In the past couple of years, many countries have welcomed cryptocurrencies. They have opened their doors for the cryptocurrency and the blockchain sector. However, every country has tried adopting them with their own innovation.
Many countries have adopted cryptocurrencies in competition with their neighboring countries or their competitors. Then there are countries that have adopted cryptocurrencies to strengthen their economy and fight against the sanctions.
Despite the efforts, not many countries have succeeded in emerging as a hub for cryptocurrencies. Then comes Paraguay, which never expressed any interest in becoming a hub for cryptocurrencies.
However, the majority of the cryptocurrency community wants the country to become the cryptocurrency sector’s hot spot.
The reason behind being a Hot Spot
There are two major reasons why Paraguay is considered the best platform. The first reason is the softness of the taxation system and the second reason is electricity at very low rates.
The government of Paraguay has already recognized how important these factors are for running cryptocurrency operations. Therefore, they have decided to go ahead and approve a new law surrounding digital assets.
They are currently going through all the efforts of having a new law passed that would support the adaption of cryptocurrencies in the country.
Ruling Passed in Favor of Cryptocurrencies
It was on May 25 when a new bill was presented in front of the Paraguayan Congress, which Congress Members approved with the majority. Once the voting was called, the votes in favor of the bill were 40 and the votes against the bill were 12.
Following the approval, the new ruling will now be presented in front of the Senate for the purpose of ratification. Once ratified, it will be presented to Mario Abdo Benitez, the President of Paraguay.
Implementation of the Bill Following its Ratification
Once the bill is ratified, it will automatically apply to any organization or any individual who has been involved in operations related to cryptocurrencies.
These operations can be management, safekeeping, production, transfer, trading, commercialization, and mining of cryptocurrencies. If there is anything that deals in cryptocurrencies in any way, the new bill will be applicable to it.
The bill will also regulate the requirements and utilization of taxation and electricity. Most importantly legal and financial guarantees will be given to individuals and businesses through the implementation of the law.
Growth for Bitcoin and Altcoins
The implementation of the new law will be extremely beneficial for the cryptocurrency sector. The Bitcoin mining sector will get to benefit a lot from the new law. The people in Paraguay will be able to make high investments in cryptocurrencies as well.
This would definitely help strengthen the presence of cryptocurrencies and help in improving the price of Bitcoin.