Paraguay’s Legislative Move on Cryptocurrency Mining
A shift in Paraguay’s stance on cryptocurrency mining has emerged as a group of lawmakers introduces a bill aiming to temporarily suspend such operations. The bill, presented to the National Congress on April 3, seeks a 180-day halt on cryptocurrency mining activities within the country, citing concerns over their significant electricity consumption. The proposed ban could extend until a comprehensive regulatory framework governing these operations is established.
Should the bill pass, legal cryptocurrency miners in Paraguay face an uncertain future. Joaquin Morinigo, founder and CEO of Cryptopy, a crypto consulting firm, disclosed that established mining operators had already paid the National Power Administration over $30 million to secure power delivery to five undisclosed sites.
Brazil’s Taxation Overhaul for Cryptocurrencies
In Brazil, plans are underway to revamp the taxation framework surrounding cryptocurrencies. A forthcoming bill addressing individual investment taxation proposes reclassifying cryptocurrencies to be taxed similarly to shares and capital instruments with fluctuating exchange rates. Under the proposal slated for presentation to the National Congress, crypto investors would be liable to pay 15% of their income derived from cryptocurrency transactions.
Presently, cryptocurrency gains are taxed as assets, subject to capital gains tax rates varying based on transaction volumes. Rates start at 15% for transactions below 5 million reais ($990,000) and rise to 22.5% for transactions surpassing 30 million reais (nearly $6 million), with progressively lower tax percentages for intermediate transaction volumes.
Latam’s Perspective on CBDCs
A recent poll indicates a prevailing belief among citizens of Latin America (Latam) that central bank digital currencies (CBDCs) could serve as a potent tool in combating corruption within the region. Conducted by consulting firm Sherlock Communication across Argentina, Brazil, Chile, Colombia, Mexico, and Peru, the study revealed that 67% of respondents supported the notion that CBDCs might mitigate corruption.
Moreover, seven out of ten respondents expressed the belief that implementing CBDCs could expedite payments and streamline bureaucratic processes. However, the poll also highlighted a significant educational gap concerning digital currencies in the region, with 62% of respondents indicating insufficient knowledge about such initiatives.
