In a major announcement, Santiago Peña, President of the Republic of Paraguay Economist, shared on Twitter that Bitcoin is now officially legal tender in Paraguay.
In his presidential speech, Peña called it a “historic achievement in the economic transformation of our nation.” He explained that after thorough reviews and expert consultations, he added, “I enacted legislation that formally recognizes Bitcoin as a legal tender currency in our large country.”
“This bold decision has its roots in our unbreakable commitment to financial innovation, economic sovereignty and inclusive growth,” Peña said. Along with this news, President Peña revealed that the government has already secured $5 million worth of Bitcoin as part of its national reserves.
The initiative also opens new doors for the people of Paraguay. Citizens who are enabled by cryptocurrency tools will soon have access to government-issued bonds, allowing them to invest and benefit from this policy shift. “Be sure to stay in touch with the treasury staff to ensure your income,” he advised.
With this a strong move, many in the crypto space are wondering that Bitcoin price is heading towards the long-predicted $125,000 mark. The news coincides with an increase in institutional interest. Recently, the BlackRock iShares Bitcoin Trust (IBIT), which just topped $70 billion in assets under management. At the time of writing, Bitcoin (BTC) is trading at $108,367.41, up 1.92% over the past 24 hours.
However, on- chain data raised concerns about the authenticity of this announcement , as it shows that the government’s linked Bitcoin wallet holds only about $4 and has seen no recent activity. To the President’s post, multiple users have commented that the account is hacked.
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