A new bill seeks to offer crypto businesses incentives to operate in Paraguay, preparing Bitcoin adoption as legal tender
The bill will be presented next month by Carlos Rejala, seeking to attract international mining companies. Businesses will then be able to finance Paraguayan operations using cryptocurrencies, remit dividends abroad and capitalize crypto profits in local banks, Rejala revealed to CoinDesk.
These incentives seek to boost Paraguay’s position as crypto hub of Latin America. An early Bitcoin investor himself, Rejala announced to propose the adoption of Bitcoin as legal tender if the bill passes through, following in El Salvador’s footsteps.
Shortly after the Salvadoran president Nayib Bukele announced his country to walk the crypto path, Carlos Rejala made on optimistic tweet “This week we will start a project to take Paraguay to the top of the world! The real to the moon”.
Paraguay’s main advantage over other countries is their cheap but green electricity. The cost lies at $0.05 per kilowatt-hour, with near to 100% of production coming from hydroelectric plants. Consumption is lower than production, enabling Paraguay to dedicate energy to mining without expanding its energy network for now.
It is renewable energy, non-polluting, which is extremely important for the mining companies
- Carlos Rejala
Mining in Paraguay is obliged to be registered and taxed, however the rules are more lax than in other Latin countries. Capital flows to foreign countries underly no restrictions. Chinese investors have already uttered interest.
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