Paraguay Considers Bitcoin as Legal Tender, Bitcoin Experts Critiques Move

• Paraguay mulls Bitcoin as legal tender, sparking expert insights.
• Lorena critiques Paraguay’s CBDC proposal, highlighting Bitcoin’s role.
• Education is crucial as Paraguay navigates Bitcoin’s legal status.

In a recent development, Bitcoin expert Lorena sheds light on Paraguay’s potential move to recognize Bitcoin as legal tender. The proposal, presented in the Chamber of Deputies, has stirred discussions within the crypto community.

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Addressing fellow Bitcoin enthusiasts, Lorena highlights crucial details surrounding the proposed law. She points out discrepancies in the terminology used, noting that Bitcoin and other cryptocurrencies are erroneously referred to as companies, emphasizing the need for clarity.

The proposed legislation primarily focuses on the creation of a Central Bank Digital Currency (CBDC) named the ‘digital guaraní’. This virtual currency, akin to Bitcoin in its mining-based operation, aims to modernize Paraguay’s financial landscape.

Lorena further explains that the law suggests adopting Bitcoin as an experimental and temporary legal tender. This entails using Bitcoin alongside the digital guaraní, with merchants and individuals mandated to accept both forms of payment, mirroring El Salvador’s approach.

However, Lorena critiques the proposal, highlighting the lack of understanding regarding Bitcoin and virtual currencies among policymakers. She deems the project unfeasible and emphasizes the importance of education in navigating cryptocurrency regulation.

Moreover, Lorena advocates for considering Bitcoin as a backing for CBDC issuance to mitigate inflationary risks. Despite the challenges posed by ignorance, she remains committed to promoting awareness and fostering informed discussions within the crypto sphere.

As Paraguay deliberates on its stance towards Bitcoin and digital currencies, insights from experts like Lorena play a vital role in shaping informed decisions and navigating the complexities of cryptocurrency adoption and regulation.

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