Following El Salvador’s historic decision to recognize bitcoin as legal cash, a move that was a global first, the internet has been abuzz with reports that another Latin American nation, Paraguay, may be on its way to following in El Salvador’s footsteps. Paraguay attracts crypto investors who are closely watching the region’s developments. Those perhaps are a little too far off the mark. Reuters reported on Friday that Paraguayan legislator Carlos Rajala had unwittingly triggered the cryptocurrency craze with a tweet earlier in June. It also supports a measure to regulate cryptocurrencies rather than declare them legal cash. In contrast to El Salvador, “it is a law of digital assets,” said Rajala, a centrist politician, “and it varies from that of El Salvador since they are accepting it as legal money, however in Paraguay it will be difficult to implement anything like that.”

Rajala Pushes for Digital Asset Law in Paraguay

Rajala had tweeted earlier in June, linked to a report about a local entertainment company that was intending to take bitcoins, saying: “This is the country of Paraguay. To pass his measure governing digital assets, the 36-year-old, a minor political party leader with just four seats in Congress, is now seeking support from public members. In Paraguay, Rajala said that, even though his party does not have a majority in Congress, MPs from other political parties were interested in his idea. In addition, he stated, “we want the authorities and banks to participate so that Paraguayans or foreigners may function lawfully with these assets since we know that unlawful transactions happen here and in other countries.” “We aim to establish ourselves as a cryptocurrency-friendly nation.”

As a result of El Salvador’s historic decision to recognize Bitcoin as an official currency earlier this month, it seems like another domino in Latin America is about to fall. According to his tweets, he plans to introduce legislation in July in the country’s National Congress that would most likely be similar to El Salvador’s new cryptocurrency legislation. If you are searching for different questions about bitcoin to learn, visit https:/ethereumcode.app

Paraguay Signals Crypto-Friendly Future

The proposed law aims to establish Bitcoin as legal cash and attract international cryptocurrency investors to Paraguay. The country signals openness to innovation and legal clarity. According to Rajala, the law would be published on July 14 and take effect on August 1. Rajala has shared information on his social media, leading to what we know so far.

On June 7, Rajala announced plans to cooperate with the Paraguayan crypto community. He hopes the country becomes a global hub for crypto investors, placing it at the forefront of digital technology. Bitcoin has faced criticism from environmentalists due to the energy-intensive mining process.

In a series of tweets, Rajala highlighted Paraguay’s renewable energy as a key factor in attracting foreign investment. Hydroelectric power meets 100% of the country’s electrical needs. Nearly 90% of the country’s energy production is exported to Brazil and Argentina. However, the pace of legislation in Paraguay will be slower than in El Salvador. Rajala’s draft law won’t be presented to legislators for over a month, despite Bukele’s determination to follow El Salvador’s example.

Paraguay Faces Challenges in Crypto Legislation

A major stumbling block for Rajala is achieving broad agreement on the plan among his colleagues from different political parties. He is a member of the Hagamos Party, which has just two members in the 80-seat Chamber of Deputies. Rajala represents this small party, and it’s uncertain whether he has more support from the main establishment parties.

Across most of Latin America, the use of digital currencies is rising. Recently, more businesses have announced they will accept cryptocurrency as a form of payment. This growing adoption is attracting crypto investors. They see the region as an emerging hub for digital finance and innovation.

Grupo Cinco, a major entertainment company in Paraguay, recently announced it will accept Bitcoin and Ether starting July 24. This is instead of traditional payment methods like credit cards and checks. Rajala expressed his pride in this development during an interview with La Nación on Friday.