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Is Bitcoin also legal tender in Paraguay?



Paraguayan parliamentarian Carlitos Rejala said that in 2023 Bitcoin will be legal tender in the country.

In fact, Rejala had made similar statements in the past, only in the end it was revealed that they had raised excessive expectations.

In fact, Rejala belongs to a small party that has a marginal role in the country, but is apparently working together with the majority of the government to try to facilitate the use of BTC in Paraguay.

It is not part of the government, but its work in Parliament seems to be carried out in close contact with the government majority, since indeed some of the initiatives that it had announced in the past have been successful.

However, it is necessary to distinguish between Rejala's public statements and the results actually obtained or obtainable, since the deputy tends to make a very evident and optimistic propaganda, often generating excessive expectations in this way that are later decidedly reduced by reality. .

However, it must be said that in El Salvador, or another country in Latin America, Bitcoin has already been declared by Parliament as legal tender, and will enter into force in all aspects with this role as of September.

Therefore, Rejala's statement today does not seem absurd at all, and may even be realistic. Certainly at least it is plausible.

2023 is still a long way off, and the experience of El Salvador shows how quick and easy it can be to declare Bitcoin as legal tender in similar states.

However, there is an important difference with Paraguay. In fact, in El Salvador the majority of the government is very large and solid, while in Paraguay it is decidedly smaller. This, on the one hand, means that even small parties like Rejala's can play an important role, but on the other, it means that decision-making processes can be much slower.

In fact, in El Salvador the decision was taken very quickly, compared to the common political calendar, while in Paraguay the process is much slower. Furthermore, there is no certainty that the current majority will remain until 2023.

Another important difference lies in the availability of electricity to mine bitcoins.

In fact, both countries could make a profit using locally produced low-cost electricity to mine bitcoins, but while that available for El Salvador is very limited, Paraguay has a large amount, especially thanks to hydroelectric plants that produce renewable energy.

However, Carlitos Rejala's tweet reveals that in Paraguay Bitcoin will soon not be declared legal tender in the country.


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