REGULATION

Cryptocurrency Regulation | Legal + Excess Energy Reuse, Paraguay Senate Passes Cryptocurrency Bill

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Cryptocurrency Regulation | Legal + Excess Energy Reuse, Paraguay Senate Passes Cryptocurrency Bill

Paraguayan Senator Fernando Silva Facetti tweeted on the 17th that the Senate has approved the cryptocurrency bill proposed in July. The bill defines several key terms, including virtual assets, cryptocurrency mining, VASP (Virtual Asset Service Providers), and has now been sent to the House of Representatives for further review.

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Fernando Silva Facetti is the initiator of the bill. Fernando Silva Facetti stated that the cryptocurrency bill in Paraguay has an important significance, which is to promote cryptocurrency mining activities using the surplus electricity generated in the country.

The bill clearly states that cryptocurrency mining is a legal activity:

"Virtual asset mining is a digital and innovative industry. This industry will benefit from the incentives provided by national legislation."

In fact, Paraguay produces more energy than it consumes, so many companies are interested in entering Paraguay to invest in the cryptocurrency mining industry.

Since El Salvador adopted Bitcoin as legal tender, it has had a certain impact on Central and South America, especially as many countries in Central and South America suffer from inflation, including Argentina, Venezuela, and Mexico. Central and South America has become a place where the adoption of cryptocurrencies is most feasible. In particular, citizens of Argentina and Venezuela have turned to digital currencies like Bitcoin as a more viable payment method as their national currencies collapse.

This article is authorized to be reprinted from Horizon Next Sumari News