MPs fear their countries lag in new developments. Legislators from Argentina and Brazil also open new doors of support for bitcoin.

El Salvador’s move to adjust its legislation to adopt bitcoin (BTC) as a legal tender is a great highlight and is waking the interest in other nations of Latin America. Now congressmen from Panama and Paraguay revealed their intentions to propose bills to make cryptocurrency a vital part of their financial system and monetary policies.

For Panamanian deputy Gabriel Silva, El Salvador’s decision could open a whole new world of technological development, so his country should take the same actions. The legislator assured this Monday, June 7, that he will propose legislation to encourage the use of cryptocurrencies.

This event is relevant and Panama does not want to be left behind. Panama desires to become a true technology and entrepreneurship hub, so the country has to support cryptocurrencies. Silva said through Twitter that he will be preparing a proposal to present at the Assembly.

Following Silva’s intentions, Paraguayan deputy Carlos Rejala took a supporting posture on the potential of the adoption of bitcoin and cryptocurrencies. The legislator assured that Paraguay could benefit from the ecosystem of digital assets and its market of two trillion dollars, which would help to improve the sending of remittances and new upcoming investments.

According to Rejala, Paraguay’s Gross Domestic Product could increase to double digits if Bitcoin-related companies start investing in the nation. It is important to start talking and, above all, do things that boost the financial system with projects that connect governments with global innovations that benefit more people,” said the Guaraní parliamentarian.

Argentina and Brazil are Moving Closer to Bitcoin

While from Panama and Paraguay voices begin to sound of potential adoption of bitcoin, in Argentina and Brazil some deputies are beginning to show their sympathy for the cryptocurrency created by Satoshi Nakamoto.

In the Amazon nation, legislator Fabio Ostermann updated his Twitter profile with an image wearing laser eyes or “laser eyes” in support of bitcoin. Ostermann was followed by Congressman Gilson Marques who also made his change public and released the hashtags #bitcoin and #tothemoon referring to a sudden growth in BTC’s price.

In Argentina, the parliamentarian Francisco Sánchez, deputy for Neuquén, now has the “laser eyes”. He updated his profile on the social network, and the official shared a message saying that he could not believe it, but that is the way it is.

Unlike the pronouncement of the legislators of Panama and Paraguay, in the case of the Brazilians and the Argentine, there are no further details about potential proposals to adopt bitcoin as legal currency in their nations. However, the display of their endorsement of BTC draws attention as they could pave the way for more friendly laws in terms of cryptocurrency.

Last Saturday, June 5, Nayib Bukele, the President of El Salvador, announced that his country would start to face a regulatory process that would allow it to adopt bitcoin as legal tender.

By: Jenson Nuñez

The president promised investors that there will be no taxes on capital gains. Justin Sun assured that Tron will be the first company to establish offices in El Salvador.

After announcing, on June 5, his intention to adopt bitcoin as legal currency, the president of El Salvador, Nayib Bukele, openly spoke about his strategies to encourage investments by cryptocurrency companies in the nation.

On Sunday, June 6, the head of state of the Central American nation indicated through his Twitter account that his proposal will be accompanied by some fiscal and economic incentives for the new capital in bitcoin that could enter the country, once they are put into action. March your plans.

Bukele highlighted “excellent weather, world-class surf beaches, beachfront properties for sale” as one of the main advantages for investors, adding that El Salvador is one of the few nations in the world without income taxes. property.

According to Bukele, There is no Tax on Capital Gains in Bitcoin

On the other hand, he also clarified in his tweet that in his country, there is no tax on capital gains in bitcoin, since it will be legal tender. It also brings instant permanent residence for crypto entrepreneurs.

In response to Bukele’s message, many of the followers, including those who identified themselves as cryptocurrency investors, responded to the tweet noting that, due to this offer, moving to El Salvador would bring many benefits.Among those who commented on Bukele’s account was Binance CEO Zhao Changpeng, who posted a gif of Mickey Mouse packing his bags.

The founder of Tron also made a similar move. He expressed that investors and crypto entrepreneurs will start their businesses in El Salvador. Sun makes another announcement on Twitter on the matter, ensuring that Tron will become the first crypto organization to create an office in El Salvador.

Investments in El Salvador in the First Quarter of 2021

Although President Bukele has not explained in which economic areas these bitcoin investments can happen, some local media in that nation reported that during the first quarter of 2021 there have been a lot of announcements about the injection of capital by the private sector.

The confirmed projects lead the construction, energy, telecommunications, real estate, and retail sectors that are committed to a more agile recovery of the business impact, which is diminished by the greatest collapse of the economy in 40 years.

In total, the investment plans have a combined value that exceeds USD 100 million.  Some initiatives were planned for 2020, but other investors follow a strategic approach to reactivation.

Bukele’s Statement is a Surprising Move

The details of the measures that would make the Central American country the first in the world to adopt bitcoin as legal tender remain unknown. However, Bukele’s statement appeared through a message on a broadcast at Bitcoin 2021. During his speech, Bukele revealed that he is joining efforts with Strike company (a startup developer of a digital wallet) to build the infrastructure for the use of cryptocurrency.

By: Jenson Nuñez

According to Ruffer, young people will trade fewer cryptocurrencies after the end of the quarantine. The firm compares the rise in bitcoin to the ravages of the pandemic.

The British investment fund Ruffer made more than $ 1.1 billion in profit on its investment in bitcoin (BTC) that occured in November of last year. Hamish Baillie, investment director of the firm, confirmed this news, according to local media The Times.

The company sold at various times, taking advantage of the price rises of the cryptocurrency, between December and April of this year. Baillie did not specify amounts or dates on which Suffers sales took place.

Bitcoin had such a relevant rebound thanks to the stop of activities due to the pandemic. The investment fund considered that the millionaire stimulus package policies that the US government applied, also influenced the rise in the price of the cryptocurrency in recent months.

The executive added that, in part, the decision to sell the BTC happened because younger investors would not spend as much time trading cryptocurrencies now, due to the end of the pandemic confinements.

When the firm announced its investment, above $ 700 million, the price of bitcoin was just beginning the upward pace. It was just preparing to seek to return to the historical maximum at that time, the USD 20,000 that took the protagonist role  in December 2017.

Since then, the price of the cryptocurrency created by Satoshi Nakamoto has been continuously breaking its all-time highs, reaching a new ATH in mid-April, above $ 64,000.

Ruffer Says: Bitcoin is a Unique Beast as a Safeguard of Value

Right after the investment happened, Ruffer tried to justify his actions to the public, through a letter released in January. In that letter, Jonathan Ruffer, president of the firm, described  the investment in bitcoin as a correct move, taking into account the potential inflation at the global level and the fall of the national currencies.

Our underlying reasoning is that bitcoin is becoming a challenge to gold’s position as the only supranational currency, the one to be owned when national currencies crash. (…) Our judgment is that it is a unique beast as a new store of value, combining some of the most prominent features of technology and gold.

Ruffer’s position in the world of traditional investing is something usual. In recent years, more and more institutions and personalities in the financial world have been considering cryptocurrency as an interesting rival to gold when it comes to a store of value.

Cryptocurrency investment funds such as Grayscale have gained greater notoriety. Meanwhile, there are companies like MicroStrategy that have launched an aggressive BTC accumulation campaign.

Bitcoin’s current position as a store of value is already recognized by most banks. JPMorgan, Wells Fargo or UBS have already started offering their clients exposure to cryptocurrency through various forms of investment after having very critical positions towards BTC.

By: Jenson Nuñez

The installation of a new mining farm will happen in the United States of America and will work as a proof of concept. Square is behind the financing of the project with $ 5 million, and Blockstream will lead the management of the mine.

Square, a cryptocurrency payments company founded by Jack Dorsey, has joined efforts with Blockstream, the Bitcoin technology company behind the Liquid Network sidechain, to release an open-source bitcoin mine that will function with solar energy.

Both companies released the information in the framework of the Bitcoin Conference that took place in Miami last weekend. It was later confirmed in posts posted on her blogs and social media on June 5.

On this, the publications explain that the new mining farm will be installed in the United States of America and will operate as a proof of concept. The goal is for this mine to play the main role as a model for other companies to learn about bitcoin mining, according to the note from Blockstream, which already owns a bunch of mining facilities in Canada and the United States of America.

The farm will receive financing support from Square, which will invest USD 5 million to support the installation of the mine, while Blockstream will bring the infrastructure and its expertise to develop and set the management of the project.

“As we continue to explore synergies between the two companies, we look forward to sharing our ongoing learning and real-world data,” Square tweeted announcing its participation in the project.

To meet such a goal, periodic reports will be provided on the project’s economy. To achieve this periodic report, Blockstream will create a free access dashboard that will display real-time mine performance metrics, adding also the power output and every bitcoin mined.

Square Promotes Transition to Bitcoin ‘Green Mining’  

The new bitcoin mine will be part of a broader plan launched by Square in December 2020 and known as the “Clean Energy Investment Initiative through Bitcoin.” The program wants to promote the use of green energies to mine the main cryptocurrency.

The basic goal is to aid companies in their road to mining transition intending to use cleaner energy sources. Square predicts that by 2030 all the operations of the companies that join the program will have zero carbon emissions.

The CEO of the company, Jack Dorsey, hopes that Bitcoin will eventually run entirely on clean energy eliminating its carbon footprint and driving the adoption of renewable energy globally.

As this outlet has previously reported, cryptocurrency mining has been drawing much criticism in recent months for its heavy use of electricity and its alleged damage to the environment. This is an argument that was even used by Tesla CEO Elon Musk to justify the withdrawal of BTC as a means of payment last May.

Cryptocurrency critics often view the resources used to secure the network as wasteful and destructive.  But the fact is, studies are showing that more than 70% of the bitcoin mining industry receives its power from clean, green, and renewable energy.

By: Jenson Nuñez

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

MicroStrategy is offering $ 400 million in senior secured notes to private investors to raise funds to purchase more bitcoins. The company also announced two new subsidiaries.

MicroStrategy, the publicly traded software company, keeps reaffirming its commitment to Bitcoin (BTC) after revealing its intentions, on Monday, to raise $ 400 million through senior secured notes, a type of debt offering, with the sole intention of using the net proceeds to acquire more bitcoins.

The firm, which is at the hands of digital currency enthusiast Michael Saylor, has already allocated more than $ 2 billion to Bitcoin investment and does not appear to have plans to stop yet. According to a statement, MicroStrategy will now offer senior secured notes due 2028 to acquire more BTC.

The company’s plan also adds to its agenda two new subsidiaries: MicroStrategy Services Corporation and MacroStrategy LLC. The first subsidiary will grant the new notes if they meet the proper issuance and will secure them with the bitcoin that it acquires, as detailed in the statement.

A Total Amount of $ 400 Million in Senior Secured Notes

The bonds will be granted fully and unconditionally on a senior insured basis, jointly and severally, by MicroStrategy Services Corporation, a subsidiary of MicroStrategy, and certain MicroStrategy subsidiaries that may be acquired after the closing of the offering.

The statement also explains in detail that the company will try to offer, under market conditions and other factors, a total amount of USD 400 million in senior secured notes due 2028 in a private offering to qualified institutional purchasers.

It is also important to consider that only investors qualified by SEC rules can take part in the “private sale” of said notes, which are a kind of collateral debt that can turn into cash or stocks. As for backing, the notes will meet safety with MicroStrategy’s existing assets, including any Bitcoin purchased from the notes’ proceeds, but excluding the firm’s existing bitcoins.

MicroStrategy Keeps Adding BTC

This is not the first time that MicroStrategy has offered convertible notes intending to raise funds to buy Bitcoin. As reported, the company previously sold $ 1.05 billion in private notes to invest in the cryptocurrency. The most recent growth happened in February when it announced a mutual fund of $ 900 million in senior convertible notes.

The latest bitcoin acquisition plans are part of a MicroStrategy hedging strategy to allocate funds to the major cryptocurrency. The company has been adding Bitcoin to its treasury since last year and amassed more than 92,000 BTC.

The company’s structural change related to the formation of subsidiaries also shows that MacroStrategy LLC will now be in charge of managing MicroStrategy’s holdings in Bitcoin.

In other MicroStrategy news, the company intends to provoke an impairment loss of at least $ 284.5 million related to its Bitcoin holdings for the three months after June 30, 2021. This news appeared in a document from the US Securities and Exchange Commission (SEC) dated June 7. The price of Bitcoin has fallen around 45% in recent weeks, from its high of $ 64,500 in mid-April, to close with $ 36,000.

By: Jenson Nuñez