Paraguay has become the next country making moves towards a complete acceptance of digital assets after a recent update. The country has been seen as one of the most sought-after locations for miners across different digital assets. This has put it in pole position to become the next El Salvador or the Central African Republic, where Bitcoin is regarded as an official means of exchange. Most of this is owing to the recent regulations that the country has signed into law to effect these changes.
Deputies voted 40-12 in favor of the crypto bill
Countries across South America have been working tirelessly to ensure that their residents enjoy the most out of digital assets. Although the country’s central bank has refused to see things their way, Paraguay has embraced a new plan to see the country adopt crypto. In a recent meeting involving only the deputies, a vote was carried out where crypto was favored through 40 votes compared to those against it, which stood at 12.
Although the Senate has been one of the driving forces of crypto adoption in the last few years, it is now time to show that they believe in the assets. The law mainly talked about how regulators would be able to monitor firms and companies in the commercial sector. Some of the activities of the regulators will involve awarding licenses and overseeing the activities of the firms, among others. However, the new law does not highlight making a digital asset the country’s legal tender.
Paraguay has a special license for industrial miners
One of the most important reasons for the update is to ensure that the country will be able to lure foreign miners through its competitive energy rates. Presently, Paraguay is one of the countries with the lowest electricity rates in the region over the last five years. New companies who would deal with digital assets will also be required by the law to ensure that their business is registered before they begin their operations.
Asides from small-scale miners, industrial miners would also need to seek several permits and approval before starting their operations. The bill also talked about private individuals that wish to offer crypto services without being an exchange. According to a recent study, most of Paraguay’s technology-related companies have shifted to adopt digital assets since 2020. Out of the number, more than 30% allow firms and individuals to carry out a crypto-related crowdfund.
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