Paraguay is closer to crypto adoption after a 40:12 vote from the Chamber of Deputies. The bill will regulate the trading and mining of cryptocurrencies in the country.
The country’s Chamber of Deputies gave adopted the legislative framework. As a result, it will go to the House of Senate for approval.
Once the Senate approves the new proposal, it will go to the executive tier. Last December, the Senate passed a similar bill for crypto trading and mining.
Paraguay Attracts Crypto Miners With Low Cost Of Electricity
The bill aims to make Paraguay a home for crypto miners to pitch their business. Presently, the cost of electricity in the country is low, 5 cents per kWh. This makes it the country with the lowest electricity cost in Latin America.
If the country adopts the legislation, all crypto miners will have to secure a license. This license will authorize them to use the nation’s electricity. After receiving the permit, they will register their organization with the necessary authority.
The proposal noted that there would be the creation of a registry for intending crypto custodians. Individuals and legal entities that want to offer crypto services will have to register. Meanwhile, the bill did not mention exchange firms.
The Crypto Bill Faces Opposition
However, several lawmakers have shown disapproval of the bill. An example is Tadeo Rojas, a member of Congress. Rojas noted that the budget committee of the parliament was against the bill.
Also, he stated that the disadvantages of crypto mining outweigh the benefits. Although it could lead to employment opportunities, mining consumes so much power.
The Congressman believes the country can not sustain crypto mining in the long run. He said, “the current power available can not serve the country and crypto miners.”
However, another member of the parliament, Sebastián García, believes the bill will regulate power usage. García noted that the bill would set limits to align power consumption with availability. Yet, other members are not happy as these mining companies may not stick to the limitation.
Paraguay May Adopt Crypto As Legal Tender Soon
According to a report by Finbold, Paraguay will likely adopt crypto as legal tender soon. Paraguay topped the report as the first country, while Venezuela came second.
However, financial institutions such as the IMF are not happy with such actions. The International organizations noted that fraud and economic instability could increase.