in Paraguay is growing. However, many people and banks still associate Bitcoin and other cryptocurrencies with illicit activities.
Joaquín Morinigo Fiorio, CCO of Arapy Network and member of CryptoPy, explained why a Paraguayan cryptocurrency law is unlikely. The Paraguayan bitcoiner highlighted the trust in the national fiat currency, the beliefs about criminal activities, and the refusal by banks.
This Twitter user explained that Paraguay’s fiat currency, the guaraní, is one of the most stable and the oldest in the region. Since 1943, it has almost always had annual inflation of less than 30%, according to the World Bank. In the last ten years, the guaraní has suffered falls of less than 10% per year.
People Cannot Use Their Cards to Buy Cryptocurrencies
For his part, @CRIPTOBOI said that Paraguayan banks are mounting a powerful anti-cryptocurrency lobby. He added that those institutions do not allow opening accounts on exchanges or using cards to buy cryptocurrencies.
The tweeter and entrepreneur commented that the Paraguayan community wants crypto cards to reach the country to buy with cryptocurrencies. He explained that people could make transactions in cryptocurrencies with small amounts but could not put together the logistics to move large sums.
He explained that banks refuse to operate with cryptocurrencies, even though they were branches of large banks doing so abroad. He argues that most banks in Paraguay are very traditional and do not yet understand cryptocurrencies, which they keep in a gray zone.
Morinigo Fiorio said that those wanting to enter the ecosystem could not buy cryptocurrencies with their cards. Besides, many people still believe that cryptocurrencies only serve for laundering money and financing terrorism, among other illicit acts.
The bitcoiner highlighted that education would help change that situation since many Ponzi schemes still operate in Paraguay, promoting this taboo. He explained that Paraguayan cryptocurrency communities are fighting these scammers and warning people to avoid being their victims.
After the government of El Salvador made the Bitcoin Law official, it seemed that Paraguay could follow its path. In this regard, a congressman informed that he would present a project in July, but no one knows about it yet.
Bukele Says that Bitcoin Is a Bulletproof System
In recent days, Salvadoran President Nayib Bukele stated that he believed that the Bitcoin system would become the future. He argued that it was a bulletproof system that would work not only for El Salvador but for all of humanity.
Bukele spoke of large financial entities such as the International Monetary Fund and the Inter-American Development Bank (IDB). He referred to them as powerful institutions whose help his country needs, as it has done in the past.
The president was happy about this initiative to convert Bitcoin into legal tender in El Salvador. Those who support the Salvadoran Bitcoin Law include some politicians from Paraguay, Panama, Honduras, Guatemala, Costa Rica, Nigeria, and Tanzania.
Regarding whether people should trust him, Bukele said that they should not trust the government but Bitcoin. In his opinion, the pioneering cryptocurrency is a perfect system that can work for Salvadorans.
By Alexander Salazar
