Paraguay may also soon legalize the use of Bitcoin within the country. To present a bill to this effect was Carlitos Rejala, an MP considered a staunch advocate of digital money. Whose move is in practice to try to follow the one recently put in place by El Salvador, which has joined BTC to the dollar, affirming its obligation to accept payments that take place within national borders, with few exceptions. Of the Bitcoin Law, this is the name of the provision adopted by the president Watch, however, much discussion continues in these hours.
South America seems willing to open to Bitcoin
The bill presented by Rejala fits into a rather particular situation. That is that of a South America which continues to be burdened by too high levels of inflation, such as to undermine the purchase value of local currencies and push workers and retirees to seek valid alternatives in order not to be penalized.
A speech which concerned in particular Argentina e Venezuela. The first is forced to face a new crisis of the pesos despite the policies dictated by the International Monetary Fund, while the second is grappling with the embargo of the United States and allies. Just to try to limit the damage, Nicholas Maduro has not only promoted a state cryptocurrency, the Petro, but also promoted the digitization of payments. Thus opening a door in which Bitcoin, but not only, has been able to enter comfortably.
However, other South American countries are also looking at digital assets with increasing interest. Starting from Colombia, now in the midst of a very serious social crisis that does not seem to be able to have outlets in the short term.
The opposition of international organizations
In this panorama, it is noteworthy that the The World Bank is trying to put the process in the middle of the process. Request for technical help from the Salvadoran government, the organization objected to a sharp denial. While the International Monetary Fund wasted no time in proclaiming its strong concern for the triggered process. Has been Gerry Rice, a spokesperson, to say that the adoption of Bitcoin may raise a long series of questions on legal, financial and macroeconomic issues. The spokesman then added that the IMF is following the evolution of the situation and is initiating consultations with the authorities of the small Central American country. Also pressured by foreign investors, who want to prevent the adoption of BTC as legal tender, fearing its repercussions on the economy. An attitude that is explained by the fact that the country, at the moment, is heavily dependent on the dollar.
The Bitcoin Volatility Problem
Among the many problems that are connected to the increasingly widespread introduction of Bitcoin in the South American economy, it is worth mentioning in particular that of volatility. In fact, it is enough to see the very strong fluctuations of the token invented by Satoshi Nakamoto to realize what we are talking about.
At the same time, however, it should be emphasized that although the fluctuations in its price are strong, many workers and retirees from various countries in the area seem absolutely willing to continue on the path taken. Even because the inflation levels of some countries are so high that any losses achieved with digital money are almost negligible. A risk, therefore, considered in the same way as the lesser evil.