Paraguayan congressman Carlitos Rejala tweeted that Bitcoin would become the “official currency” of the country if he became President in 2023.
This wasn’t the first time that Rejala showed his support for Bitcoin, as just a couple of months prior, he had declared that he was planning to introduce legislation that would legalize Bitcoin in Paraguay.
The bill was more focused on crypto regulation, though. Article 14 reads:
“The Virtual Assets trading entities must inform the acquirer of the trading conditions with Virtual Assets, expressly notifying that the virtual assets are not recognized as legal tender, therefore, they are not backed by the Central Bank of Paraguay.”
But his most recent promise shows that he is still a big supporter of the King of Crypto.
The Paraguayan guarani (PYG) has been fighting inflation since it was released in 1944. Unlike other countries where inflation is a problem and people turned to Bitcoin, this isn’t the case with Paraguay.
Across the previous two years, Paraguay has experienced a rather unimportant volume of crypto transfers, especially when the comparison is made to other countries in South America.
For example, its historical volume stood at $1,836 on September 2nd, while Venezuela’s stood at $1,795,366.
But thanks to its Itaipu and Yacyreta hydroelectric dams, the country is one of interest for crypto miners. Bitfarm Ltd., for example, has signed a five-year-long lease in order to enjoy green hydroelectric power at a competitive rate.
“The new Paraguay facility will be used to house approximately 3,000 used miners capable of 150 Petahash per second and is anticipated to be fully operational by December 2021. If the site were fully operational today it would be producing Bitcoin at a cost of approximately US$7,850 per coin.”