Paraguay to Follow El Salvador’s Path in Legalizing Bitcoin

  • June 21, 2021

Paraguay to Follow El Salvador’s Path in Legalizing Bitcoin

Paraguayan congressman, Carlos Rejala, plans to draft a bill to attract crypto businesses and international mining companies. This is after El Salvador decided to make the father of all crypto coins a legal tender in the country.

Moreover, the planned project will allow cryptocurrency companies to finance their operations with cryptos, dispatch dividends abroad. And capitalize their crypto profits in their local banks, the congressman informed CoinDesk.

Who’s Paraguayan Congressman – Carlos Rejala

Carlos Rejala, a 36-year-old entrepreneur learned about Bitcoin in 2017. He later began trading the bitcoin in 2019. This was a year after taking the deputy seat for the independent Hagamos party

Following El Salvador’s announcement to introduce the bill allowing the legality of Bitcoin, Rejala tweeted a picture of himself with laser eyes and words regarding the project. He said, “El Salvador’s announcement made me avoid fear and think that this can be real in my country.”

What Does This Mean For Paraguay?

This project seeks to put Paraguay on a pedestal as the heart of crypto for Latin America. And an example to other countries in the same region.

It’s been a longtime goal for all local business leaders in the country. Especially for those who hyped the country’s cheap energy back in 2018.

Congressman Rejala continued, “First, however, we want to give Paraguay a blockchain-friendly environment.”

According to the congressman, one of the prettiest conditions for crypto mining companies is the cost of electricity in the country. Paraguay’s electricity costs around $0.5 per kilowatt-hour. This is the lowest in the region. About 100% of the electricity production comes from hydroelectric sources.

Rejala said, “The electricity here is renewable energy. It’s non-polluting which is essentially important for crypto mining companies.”

In a discussion with the First-mover on CoinDesk TV, Juanjo Benitez Rickman, the local mining company Bitcoin.com.py, said mining in Paraguay only requires registration and payment of taxes categorized as lower than in the rest of the county.

Presently, the country has a system known as triple 10, which consists of 10% income tax, 10% VAT, and 10% personal income tax.

“Paraguay offers no restrictions on foreign capital flows and payments of dividends overseas. This also makes the country a magnet to crypto investors,” Rejala added.

According to Benitez Rickman, a draft bill supported by different crypto-sphere players was presented to different Paraguayan government offices, such as the anti-money laundering office.

Support is currently sought after by Rejala to achieve the needed majority of 41 votes in the chamber of deputies and forward the bill to the Senate chamber. If both chambers approve the bill, the country’s president will enact it.

Movine Oduor
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