After the announcement made by El Salvador, a deputy from Paraguay hints at the Bitcoin-PayPal project.
Over the weekend, the announcement by the President of El Salvador, Nayib Bukele, to make Bitcoin a legal tender in that country created a bunch of headlines. After that announcement, from a Latin American country further south, Paraguay, other relevant news of adoption arrived.
The deputy of the Nation of Paraguay, Carlos Antonio Rejala Helman, expressed through Twitter that the country will start working on a large-scale project regarding Bitcoin and PayPal this week.
As seen in the tweet, there is nothing specific about the project yet, but BTC and Paypal are on board. The deputy, in addition, wears in his profile a picture with the famous “laser eyes” that indicate a price rise and shows a supportive stance for crypto. This meme became famous three months ago when the community endorsed a price of Bitcoin over $ 100,000 and Dogecoin over the dollar.
The tweet received more than 370 responses in the past few hours. Most were very supportive and of expectations from citizens of other Latin American countries. But some criticized this possible measure, due to the energy costs involved in Bitcoin mining.
The Congressman Admires Bukele
According to CryptoBriefing’s account, Rejala Helman is known for his admiration for Bukele. So that is probably the reason why he made the announcement right after him. This deputy has described himself as the “Paraguayan Bukele,”and is known for openly showing support to the President of El Salvador. His post on Twitter also includes a message addressed to Bukele that says “Thank you for your example.”
However, in the case of Paraguay, there seems to be a big difference with the news from El Salvador since Rejala Helman also mentioned PayPal. The payments company has been implementing several strategies to adopt Bitcoin recently, allowing crypto payments and withdrawals to third-party wallets.
After Rejala Helman’s suggestion, it seems highly likely that PayPal would be playing a role in the start of an era of mass adoption of cryptocurrencies in Paraguay, according to CryptoBriefing.
It is worth saying that Paraguay has not been a country without knowledge about crypto, in 2018 the government supported the creation of a crypto mining center. However, in 2019 the Central Bank of Paraguay said that cryptocurrencies had no value.
Cryptocurrencies are based on People’s Trust
The main argument of the BCP has been that the value of the cryptocurrency is based on the trust that people bring to it and its price floats in a fluctuation to supply and demand, usually with a very unstable variability. Likewise, the official entity adds in its statement, that the future price of these cryptocurrencies can both increase and tend to zero.
To bring a supportive stance to the statement, and given the lack of regulative procedures on the matter in the country, the BCP relied on the Organic Law of the Central Bank of Paraguay, The Organic Law of the Central Bank of Paraguay, in its articles 38 and 39, sets the guaraní as the monetary unit of the Republic of Paraguay.
The law also states that the Central Bank of Paraguay is the sole issuer of the banknotes and coins circulating in the economy and sets the legal tender and the unlimited cancellation force of the guaraní, throughout the national territory, according to article 285 of the National Constitution.
By: Jenson Nuñez