After El Salvador, Paraguay Is Reportedly Working On A Major Project Involving Bitcoin And PayPal

After El Salvador, Paraguay Is Reportedly Working On A Major Project Involving Bitcoin And PayPal

Just days after El Salvador’s bitcoin announcement, Paraguay may be the next nation to announce a big project involving the flagship cryptocurrency. This is according to a recent tweet from Paraguay’s Deputy of the Nation.

Paraguay Hints At Joining The Bitcoin Party In A Major Way

In a videotaped announcement on June 5, El Salvador President Nayib Bukele stated that he was planning to submit a bill next week to make bitcoin legal tender. The founder of Lightning Network-powered bitcoin payments firm Strike, Jack Mallers, revealed that he had been working with El Salvador to implement a plan to help the nation adopt the bitcoin standard. If Bukele’s plan is approved by Congress, the Central American country will be the first in the world to formally adopt the OG crypto.

Bukele, 39, changed his profile picture to include laser eyes while adding that he hopes adopting bitcoin will boost his country’s economy. He indicated that 70% of the population does not have bank accounts and is working in the informal sector. In other words, Bukele expects bitcoin to improve the life and future of millions of Salvadorians. 

Paraguay is on track to follow in the footsteps of El Salvador. Deputy of the Nation, Carlos Antonio Rejala Helman announced in a tweet earlier today that the country will be launching a major project related to bitcoin and PayPal.

His loosely translated tweet reads:

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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!”

While many details of what exactly the plan involves are still unclear, the announcement by Paraguay will please cryptocurrency fanatics. Helman summarized with “the real one to the moon”, followed by the hashtags for bitcoin and PayPal. He is also part of the “laser eyes” clique.

Worth pointing out that Helman is known for his admiration of President Nayib Bukele of El Salvado. In fact, he refers to himself as the “Bukele paraguayo” — which basically means the “Paraguayan Bukele”. Furthermore, Helman has pinned a post on Twitter in which he thanks Bukele for his “example”.

Inflation Angst In Latin America Fueling Bitcoin Adoption

The crypto rally of 2017 was primarily led by retail investors as institutional investors stayed on the sidelines since they didn’t have faith in the bright future of cryptocurrency.

The bull market of this year has shown that bitcoin is a viable hedge against uncertainty just like gold and that it is not going anywhere. With this realization, several institutional investors dipped their toes into the bitcoin market. This includes leading publicly traded firms like MicroStrategy, Square, and Tesla that added bitcoin to their balance sheets as an alternative to cash.

Now, countries like El Salvador and Paraguay have accepted the fact that hard-capped, decentralized bitcoin could not only bolster their economies but also shield them from unprecedented money printing. 

In an interview with Bloomberg over the weekend, for instance, U.S. Treasury Secretary Janet Yellen indicated that she is in support of President Biden’s $4 trillion spending package even if it results in inflation. “If we ended up with a slightly higher interest-rate environment, it would actually be a plus for society’s point of view and the Federal Reserve’s point of view,” she said.

So, all things considered, the Fed’s actions could be buoying the economy of the U.S. but they are certainly harmful to small dollar-dominated countries like El Salvador.

Bitcoin gives unbanked societies the chance to participate in the global economy and escape the shackles of the greenback, part of the reason why it’s gaining popularity in Latin America. All in all, El Salvador and Paraguay’s gravitation toward the top cryptocurrency is a mighty step towards mainstream adoption.