Within the framework of a panel at Talent Land Jalisco 2021, bitcoiners entrepreneurs from Paraguay affirmed that the country has “all the conditions” to be a “strategic technological hub in the region.”
Who better to describe how the bitcoiner road is traveled in Paraguay than those who walk it daily. And “walking” really seems like a word according to this process, which is advancing step by step towards greater adoption of blockchains in the South American country.
The founding partners of Arapy Network, a blockchain project Paraguayan, they drew the map of what they have traveled so far and what lies ahead, with the desire to reach a good destination: «In Paraguay there are all the conditions given to increase the potential of the country: the climate is ideal, it is a fairly productive, we have a lot of energy, a lot of young people and a high quality land ”, said Jorge Valenzuela. «In addition, we are positioned in the heart of Latin America. Paraguay can be a strategic technology hub in the region, “he added.
Jorge Alcaraz, the CEO of the startup that will launch its testnet in July, was encouraged to more when analyzing the possibility of adopting bitcoin ( BTC): «Paraguay would be a strong competitor for El Salvador if we put the batteries together. It is a drinking paradise ».
In what phase is bitcoin in Paraguay
Every trip presents a landscape, and in Paraguay bitcoin still crosses “a gray area”, according to Joaquín Morínigo Fiorio, the third member of Arapy who participated in the panel entitled “Bitcoin in Paraguay.” However, some green shoots appear : «There are quite a few bitcoin communities in Paraguay. It is a market with a lot of potential but very small », he said.
A in turn, Morinigo considered that the informal economy does not allow people to be bankrolled , «and that is a giant niche for adoption of cryptocurrencies and blockchain “.” Blockchain and cryptocurrencies open many doors, and governments sooner or later will have to use them “, he added.
Currently, in Paraguay” there is an official exchange which is Paraguayan and is the only one regulated. The other operations are carried out on international or P2P platforms, and there are many exchangers where you can buy and sell cryptocurrencies, “explained Morínigo.
For his part, Jorge Alcaraz assured that the adoption of bitcoin as legal currency in El Salvador was a big boost , and we believe that Paraguay could be the second country to have that kind of acceptance. However, he highlighted some obstacles to this, among which the population’s “financial culture on the ground” stands out and the prejudices related to cryptocurrencies, which they are fighting to eradicate.
All three speakers agreed that the main cryptocurrency could be of use to send and receive remittances and for electronic commerce , still underdeveloped in the country, according to his vision. Furthermore, Jorge Valenzuela stated that, regarding the adoption of bitcoin, “a qualitative leap could be made by the hand of the State or a large company.”
A fertile country for mining of Bitcoin
One of the engines driving Paraguay’s advance is the production of abundant and cheap energy, thanks to the enormous hydroelectric plants that the country has . For this reason and in relation to cryptocurrency mining, Morínigo said: “Companies from all over the world decide to come to Paraguay. For example, there is one of the largest farms in the world, owned by a Chinese company, and another Korean company is planning to come. ”
In the same sense, Alcaraz confirmed:“ We have the largest per capita energy availability in the world, practically. There are quite large mining farms here, with foreign investment. That could be better exploited and build momentum for people to adopt bitcoin. ”
Is a Bitcoin Law approaching in Paraguay?
Finally, the entrepreneurs explained what direction the Paraguayan government has taken in the bitcoiner path. In his opinion, there are indications that both sectors, the public and the private, travel in the same direction.
There are two facts that act as a counterweight to the advancement of cryptocurrencies. The first is that, until now, the Bitcoin Law in Paraguay is not firm at all , but “only rumors and hopes.” The other is that the Central Bank of Paraguay “warns about the risks of cryptocurrencies to society.”
However, there are several factors that are positive. The most important, and that directly benefits Arapy Network, is that the government agreed for the first time to finance projects that implement blockchains to through Conacyt, as CriptoNoticias has reported in previous dialogues with Morínigo Fiorio, also known as Criptoboi, his Twitter username. they are financing themselves, ”says Alcaraz. Valenzuela, meanwhile, affirmed that he sees with good eyes that “the government is approaching the sector, is opening the doors,” and even detailed that the Secretariat for the Prevention of Money or Property Laundering “issued a regulation saying that it recognizes assets and that the people who make transactions with them have to register as obligated subjects. ”
Meanwhile, Arapy is committed to the education and promotion of this technology. To do this, it already has agreements with public and private universities in the country and dialogues with legislators to inform them about the potential of blockchains. Likewise, its founders establish contacts with people from Spain, El Salvador and other countries, all to add fuel to the illusion that drives its journey.
