Skip to main content

At the Bitcoin 2021 conference, Jack Mallers of Strike announced that El Salvador is planning to introduce new legislation that will make Bitcoin legal tender in the country. 

Don’t miss out on how smart money is playing the crypto game. Subscribe to our premium newsletter - Crypto Investor.

Now, a congressman and the National Deputy of Paraguay, Carlitos Rejala, has called for Paraguay to take similar action on Twitter. The congressman also posted a photo of himself with laser eyes.

Rejala's tweet called for the nation to advance with the new generation. 

"As I was saying a long time ago, our country needs to advance hand in hand with the new generation. The moment has come, our moment. This week we start with an important project to innovate Paraguay in front of the world! The real one to the moon #btc &#paypal," read a translation of the tweet.

The announcement comes very shortly after the news from El Salvador, showing greater support in Central and South America. 

On the last day of the Bitcoin conference, El Salvador's President, Nayib Bukele, said that he plans to send the new bill to the countries congress as soon as next week. 

“Next week I will send to congress a bill that will make bitcoin a legal tender.”

Bukele also said that Bitcoin's transition to legal tender could help facilitate new jobs and allow for more financial inclusion.

"In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy."

Jack Mallers, the CEO of Zap which created the Strike Bitcoin payments app, assisted with the bill and said that Bitcoin can help developing economies protect themselves from inflation. 

“What’s transformative here is that bitcoin is both the greatest reserve asset ever created and a superior monetary network. Holding bitcoin provides a way to protect developing economies from potential shocks of fiat currency inflation." 

El Salvador's President also said that crypto entrepreneurs would receive immediate and permanent residency in the country to attract more investment and infrastructure. He said that Bitcoin would also be free from capital gains tax as it would now be legal tender.

Should Paraguay go forth with adopting Bitcoin as legal tender other countries in the region could follow suit. El Salvador's main incentive seems to be as a way to avoid inflation, a problem that many nations in Central and South America face and one that Bitcoin may be able to solve with its finite quantity.