Paraguay May Become Much More Attractive for Crypto Business Due to New Bill
In July, Paraguayan Congressman Carlos Rejala plans to present a bill to attract the international companies related to cryptocurrency.
As Rejala explained to CoinDesk, the project will allow cryptocurrency companies to fund cryptocurrency transactions in Paraguay, capitalize their profits in local banks, and transfer dividends abroad.
In 2017, 36-year-old entrepreneur Rejala discovered Bitcoin (BTC, + 4.41%). In 2018, he took a seat in parliament from the independent Hagamos party. And in 2019, he began trading cryptocurrency on the stock exchange.
On Monday, June 7, following the announcement of a bill to treat Bitcoin as legal tender, Rejala posted his laser-eyed photo and a project proposal on Twitter:
“As I said a long time ago, our country must go forward hand in hand with the new generation. The moment has come, our moment. We will kick off this week with an important innovation project in Paraguay in front of the world!”.
The goal of the project is to create a crypto center in Paraguay for the whole of Latin America. As suggested by the authors, the implementation of the project in Paraguay could become a model for other countries in the region. Rejala noted that if this bill is approved, he will try to introduce another one that will promote the use of Bitcoins as a legal type of payment.
Back in 2018, local business executives were touting Paraguay’s cheap energy and wanted to attract representatives from the crypto industry. However, according to Rejala, he would like to first give Paraguay the status of a blockchain-friendly country.
The cost of electricity in Paraguay is about $ 0.05 kilowatt per hour and is the lowest in the region. Almost all energy is generated from hydropower sources.
The CEO of local mining company Bitcoin.com.py, Juanjo Benitez Rickmann, said mining in Paraguay only requires registration and taxes, which are the lowest in the region.
Currently, the country has a taxation system known as the triple ten: 10% income tax, 10% VAT and 10% personal income tax.
According to Rejala, Paraguay also makes it attractive for the crypto investors that the country has no restrictions on the inflow of foreign capital and the payment of dividends abroad.
Paraguay is not using all of the energy it produces, Rejala said. The country sells most of it to Argentina and Brazil at incredibly low prices.
Benitez Rickmann said that in the future, if the bill is approved by both houses of Congress, it will have to be signed by the country’s president, who has the right to veto.