South American nation, Paraguay, has proposed a bill that will legally recognize Bitcoin (BTC/USD) as its official currency. The move is coming after El Salvador made a similar proposal, making Bitcoin legally accepted for the payment of goods and services.
The bill, proposed on Thursday, was made by a member of parliament Carlitos Rejala, a staunch Bitcoin enthusiast.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
According to Carlitos, the bill will be vital for repositioning the country towards growth for the next generation.
The news is coming when the price of Bitcoin has been falling due to the mining crackdown in China.
The news about El Salvador’s Bitcoin acceptance as a legal tender was welcomed by the crypto community. The latest development in Paraguay could produce a similar reaction, which is needed by Bitcoin to push ahead.
More South American countries embrace Bitcoin
While China and some Asian countries have been very critical about Bitcoin, South American countries have been more open to cryptocurrency. They believe an earlier adoption of Bitcoin may give them an edge over other countries and enable them to emerge as the next-generation financial power. But they are still facing challenges, as the process of making the cryptocurrency, a legal tender is not as straightforward as expected. El Salvador which recently announced its plans to make Bitcoin legal tender faces some issues to make it possible.
Some economic experts have faulted the decision, claiming it would cripple El Salvador’s economy due to its over-reliance on U.S. dollars.
The World Bank is not in support
The International Monetary Fund (IMF) has also raised concerns about the economic impact of El Salvador’s Bitcoin decision. The World Bank has also refused to offer any assistance to the country for the implementation and execution of the bill.
The World Bank stated that El Salvador has contacted it for assistance on Bitcoin. But it declined to support because of the transparency and environmental issues.
10/10
67% of retail CFD accounts lose money
