Paraguay to Become Second Country to Make Bitcoin a Fiat Currency?

Recently Paraguayan legislator Carlitos Rejala officially submitted a bill to make Bitcoin a fiat currency.

This morning, a news about Paraguay’s announcement to make bitcoin a fiat currency is spreading fast in the industry!

According to European news station Euronews, Paraguayan MP Carlitos Rejala recently officially submitted a bill to make bitcoin a fiat currency. The bill, which also includes support for green energy mining and making Paraguay an investment hub for global crypto investors, will be considered at the country’s National Assembly on July 14th.

Paraguay to Become Second Country to Make Bitcoin a Fiat Currency?

Unlike El Salvador, where the president proposes the bill, there is a lot of uncertainty as to whether the proposal will pass, as Carlitos Rejala’s party holds only 2 of the 80 seats. Therefore, the announcement that Paraguay has made bitcoin a legal tender is not true and will be confirmed at a later date.

On the other hand, the first country to make bitcoin a fiat currency, El Salvador, has real good news.

El Salvador’s Congress approved the president’s proposal on bitcoin on Wednesday local time, making the country the first in the world to make bitcoin a legal tender. Bitcoin will be legal tender in the country starting Sept. 7, and its exchange rate with the U.S. dollar will be determined by the market. Whether the population uses bitcoin will be optional, and salaries and pensions will continue to be deposited in U.S. dollars.

Paraguay to Become Second Country to Make Bitcoin a Fiat Currency?

Meanwhile, Salvadoran President Nayib Bukele today tweeted an important message to the world about Bitcoin, saying that the Salvadoran government will provide $30 in Bitcoin to every citizen and emphasizing that the first wallet app can be used anywhere there is a cellular connection and that citizens do not need to have a cellular plan for the app to run on the network, and that merchants can choose not to hold bitcoin.

To complement the infrastructure, U.S. bitcoin ATM manufacturer Athena Bitcoin plans to invest more than $1 million to install approximately 1,500 bitcoin ATMs in El Salvador, making it easy for the public to use the ATMs to buy bitcoin or exchange their bitcoin for cash.

With a major social experiment to legalize bitcoin in El Salvador about to begin, the fresh approach that has captured the attention of the world has brought widespread interest from many political and tech luminaries in other countries, and will probably be followed by similar actions as the submission of a bill to legalize bitcoin by Paraguayan lawmaker Carlitos Rejala.

Whether this will become a trend that then snowballs into the future or is just a flash in the pan, we will only know by looking back at the development.

Paraguay to Become Second Country to Make Bitcoin a Fiat Currency?

The reason for the positive attitude of emerging countries towards digital currencies is that the popularity of their domestic financial services is relatively lagging behind and they want to reduce costs through digitization. Many users without a bank account can easily enjoy safer and more efficient financial services by having a smartphone. Digital evolution is in line with the historical process.

Digital financial services, for improving people’s livelihood only play a very limited role, for the transformation and optimization of the real economy, is the top priority. Isofire is committed to digital financial services to help the country solve the “real economy” problem.

In the market, bitcoin traded higher after holding support around $32,000 on Thursday, as bearish sentiment began to wane as buyers pushed back from Tuesday’s oscillating low around $29,000 and bulls appeared to dominate.

Today’s announcement by venture capital giant Andreessen Horowitz to raise a $2.2 billion cryptocurrency fund could help bolster the market and is “good news” for bitcoin and the cryptocurrency ecosystem as a whole, with more big companies choosing to add to BTC.

Considering the large number of potential unlocks of Grayscale Bitcoin Trust (GBTC) shares in the coming July could be a source of downside risk for bitcoin prices, investors still need to remain vigilant.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/paraguay-to-become-second-country-to-make-bitcoin-a-fiat-currency/
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