Paraguayan congressman plans to submit a new bill to attract crypto companies, promising to become a “crypto hub” in Latin America

Paraguayan congressman Carlos Rejala plans to submit a new bill next month to attract international mining companies and other crypto businesses.

Paraguayan congressman plans to submit a new bill to attract crypto companies, promising to become a "crypto hub" in Latin America

Rejala said the bill allows cryptocurrency companies to use cryptocurrency to fund their Paraguayan operations and capitalize their cryptocurrency profits to local banks.

Rejala, a 36-year-old entrepreneur, discovered bitcoin in 2017 and began trading it in 2019, a year after serving as deputy speaker of the Hagamos Party (HSP).

On Monday, Rejala tweeted a photo of a laser eye after El Salvador announced it would propose a bill to allow bitcoin to be considered legal tender.

Paraguayan congressman plans to submit a new bill to attract crypto companies, promising to become a "crypto hub" in Latin America

He said, “This news takes the fear out of me and makes me think that this is achievable in my country.”

He added that the bill aims to position Paraguay as a crypto hub in Latin America and to set an example for other countries in the region. If the bill is approved, he will seek to submit a second bill to promote the use of bitcoin as legal tender.

It’s a long-term goal of local business leaders, who touted Paraguay’s cheap energy back in 2018.

“First, however, we want to give Paraguay a blockchain-friendly status,” Rejala said.

One of the most attractive conditions for mining companies is Paraguay’s electricity price, which is about $0.05 per kilowatt hour, the lowest in the region. Almost 100 percent of production comes from hydroelectric power.

It’s renewable energy, pollution-free, which is extremely important for mining companies”, he said.

Juanjo Benitez Rickmann, CEO of local mining company Bitcoin.com.py, said all that is required to mine in Paraguay is registration and payment of taxes. income tax, 10 percent VAT and 10 percent personal income tax.

Rejala added that the country has no restrictions on foreign capital flows and dividend payments abroad, which also makes it an attractive country for crypto investors.

At the Itati hydroelectric plant, which Paraguay shares with Brazil, Paraguay accounts for only 26 percent of the 6,067 megawatts it is entitled to each month, with the rest going to neighboring countries.

Benitez Rickmann said, “We have a lot of energy that we give away almost for free to Argentina and Brazil because we can only sell it to our neighbors.”

Benitez Rickmann said a draft bill supported by different players in the crypto industry has been submitted to several government offices in Paraguay, such as the Anti-Money Laundering Office.

He said Rejala is currently seeking support to get the required 41-vote majority in the Chamber of Deputies and to submit the bill to the Senate. If approved in both chambers, it would have to be enacted by the country’s president, who would have the power to veto it.

Photo credit: Internet

Written by Amy Liu

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/paraguayan-congressman-plans-to-submit-a-new-bill-to-attract-crypto-companies-promising-to-become-a-crypto-hub-in-latin-america/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-06-08 21:52
Next 2021-06-08 21:57

Related articles