CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Paraguay to vote on bitcoin as legal tender

By Dan Moore

09:50, 25 June 2021

Republic of Paraguay flag

The Paraguayan parliament will vote on whether to allow bitcoin to be used as legal tender, following a proposal made by congressman Carlitos Rejala on Thursday.

Plan to innovate

Congressman Rejala, a known advocate of the cryptocurrency, prefaced his bill with a tweet earlier this week, in which he said: “This week we begin with an important project to innovate Paraguay before the world.”

The decision to introduce a bill on the issue so soon after El Salvador announced it would make bitcoin legal tender reflects the positive view on cryptocurrencies in South America. Fans of bitcoin will be hoping that Paraguay’s pending vote will trigger a chain reaction through other countries on the continent.

What is your sentiment on BCH/USD?

575.60
Bullish
or
Bearish
Vote to see Traders sentiment!

Trouble in store

While Paraguay and El Salvador are keen to be seen to take the lead in adopting bitcoin as legal tender, they cannot rely on any assistance from the World Bank, which is opposed to countries taking up the cryptocurrency on ethical and environmental grounds.

BCH/USD

575.60 Price
+4.640% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

DOGE/USD

0.22 Price
+18.670% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,580.43 Price
+2.250% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

XRP/USD

0.63 Price
+1.610% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

Paraguayan politicians that are in favour of the move believe bitcoin would empower many of the country’s citizens. According to the World Bank, more than 70% of the population, or 3.2 million people, do not have a bank account.

Advocates of bitcoin point out that with cryptocurrencies, there is no need for a bank account.

Bitcoin price rise

Bitcoin prices rose by 6% after Mr Rejala proposed his bitcoin bill, although it has since steadied and was trading at $33,833.75, up 1.39% in 24 hours, as of 11am on Friday, according to Coindesk.

Trade Bitcoin Cash to US Dollar - BCH/USD CFD

1m
5m
15m
30m
1H
4H
1D
1W

Read More: El Salvador accepts bitcoin as legal tender

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 580.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading