Cryptocurrency : Why is it unlikely that Paraguay has a Bitcoin Law?

Key facts:

A bitcoiner tells how the demand for buying cryptocurrencies and paying with them grows in Paraguay.

However, many people and even banks associate bitcoin with illicit activities.

Paraguayan bitcoiner Joaquín Morinigo Fiorio, CCO of Arapy Network and member of CryptoPy, explained on Twitter the reasons why legislation in the field of cryptocurrencies seems very far in his country. Among them, the trust in the national currency, the myths about criminal activities and the refusal of the banks stand out.

Through a Twitter thread, this user explained that “Paraguay has one of the most stable and oldest currencies in the region”, referring to the guaraní, in force since 1943. According to data from the World Bank, the guaraní has ​​always had an annual inflation of less than 30% (except in the late eighties and early nineties), and has been in a downward trend since then. For almost 10 years, the guaraní has ​​depreciated less than 10% annually.

The inflation of the Paraguayan currency, the guaraní, according to the World Bank. Source: World Bank.

On the other hand, @CRIPTOBOI points out that “the anti-crypto lobby of the banks is enormous.” “In Paraguay, banks do not allow exchanges to open accounts or customers to use their cards to buy cryptocurrencies,” he added.

In dialogue with CriptoNoticias, the tweeter and entrepreneur commented that “in Paraguay the community is crying out for the possibility of crypto cards reaching the country in order to be able to spend directly in cryptocurrencies.” Currently, operating in cryptocurrencies with small amounts in the country is not a problem, but it is difficult to “set up the logistics” to move the money when dealing with large sums, he explained.

Asked about the possible reasons for this refusal by banks to operate with cryptocurrencies, even though many are branches of large banks that do so in other countries, the bitcoiner said: “In my opinion, it is because most banks in Paraguay are very traditional and still cannot understand cryptocurrencies, which are in a ‘gray area’ in Paraguay.

For this Paraguayan bitcoiner, the regulation of cryptocurrencies in the country is not on the near horizon. Source: Twitter.

Regarding a possible adoption of bitcoin in Paraguay by more people, Morinigo Fiorio assured that “a great barrier is that new people who want to enter the ecosystem are faced with the problem that their bank does not allow them to buy cryptocurrencies with their cards ». Furthermore, “many people still have the misconception that cryptocurrencies are only used for illicit things,” he stated.

Later, stressed that education is key in this regard, given that “part of that taboo exists because there are many pony schemes in Paraguay that continue to operate.” “The day to day of the crypto communities in Paraguay is to fight against these scammers and warn all people not to fall for said scams.”

After the officialization of the Bitcoin Law in El Salvador, Paraguay appeared as one of the countries that could follow its path; in fact, a congressman reported that he will prepare a project in this regard to present it in July, as reported by this media. However, this has not yet been made public and no more has been known about it.

Arapy Network, new blockchain project in Paraguay

Joaquín Morinigo Fiorio is the CCO of the startup Arapy Network, a blockchain based on the cosmos SDK for running contracts that is still in development. This will focus on “solving problems for companies using blockchain.”

Besides being the first project of this type in the country, Arapy is also “the first to receive funds from the National Council for Science and Technology, which is something historic,” said the entrepreneur.

«The contracts will be programmed in the RUST language. When we launch the mainnet, we hope to add support for EVM (Ethereum virtual machine), ”said Fiorio, who also added that Arapy will work with proof of authority.

“I hope the hard work pays off soon.”

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