Crypto industry advocates scored a remarkable victory in Paraguay, as proposed cryptocurrency mining legislation was voted on in the Senate with an overwhelming majority.
According to Criptonoticias, 29 senators voted in favor of the bill – which proposes to legalize and regulate crypto mining – with just eight senators voting against, as well as six abstentions and two absences. The bill was unveiled several months ago, and was originally the idea of an ambitious group of Paraguayan minors in collaboration with the deputy of the Lower House, Carlitos Rejala.
Rejala’s project then gained the support of the man who became the champion of the bill in the Senate – Fernando Silva Facetti. The latter seems to have convinced the upper house of the value of the bill, which proposes to create a fully regulated and transparent crypto mining sector.
This would be an important step for Paraguay, which has abundant hydroelectric power. Two of its largest plants produce significant amounts of excess energy, which is currently wasted.
Allowing miners – mostly international pools – to set up in data centers near power plants, advocates of the bill say, will be a significant new source of income for the Latin American country.
These financial arguments convinced the Senate, but there are still many obstacles to overcome before the bill becomes law: the lower house (the Chamber of Deputies) must vote on the project, and the president must also give his approval.
Regulatory authorities may also object. At the end of last week, the Central Bank of Paraguay issued an official warning to the public, advising citizens that “Bitcoin (BTC) and other similar cryptocurrencies are not considered [des monnaies légales], adding that they have no legal status in the nation and “do not benefit from any guarantees issued by the state.”
The bank said it is also working on a central bank digital currency (CBDC) pilot project, noting that it “could be a secure payment method in step with a wider digitization of citizens’ daily lives, with all the benefits of technology, but without the risks associated with private cryptocurrency. “
The Senate bill has been slightly modified from its initial version. The bill seeks to criminalize minors who do not report their activities to the state. Companies that “produce” and engage in “business activities” related to cryptocurrencies without regulatory approval would also be subject to penalties.
Optimists are sure to point out that the text of the bill also specifies that the “products” (i.e. tokens) of minors may be made “freely” “marketable” for “sale. free “under” this law “- in other words, minors must obtain permission to sell the mined tokens.
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