Paraguay's congress is currently considering three bills concerning the regulation and management of cryptocurrencies in the country. The legislative proposals, which come from both the Senate and the Chamber of Deputies, aim to establish a regulatory framework for the digital currency and cryptocurrency mining industries. In the Chamber of Deputies, a bill by Derlis Rodríguez advocates the introduction of a digital version of the national currency, the guaraní, and the acceptance of bitcoin as legal tender. The proposal highlights the need for strict regulation to mitigate risks such as money laundering and tax evasion associated with cryptocurrency transactions.
A Senate bill proposes a 180-day temporary ban on cryptocurrency activities, including the creation, storage and marketing of virtual assets, pending the development of appropriate regulations. The Senate's temporary ban is intended to address urgent issues such as illicit electrical connections to cryptocurrency mining operations, which would have resulted in significant electricity losses. The measure also aims to prevent unregulated activities that could facilitate financial crime. Another legislative proposal by MP Yamil Esgaib focuses on the need for local control over the cryptocurrency industry. It requires all persons and entities involved in the intermediation, commercialisation, exchange or storage of virtual assets in Paraguay to register and comply with national regulations.
The outcome of these bills could influence global practices in the digital economy. As the country harnesses its vast renewable energy resources, it stands at a crossroads that could boost its digital economic sector.
