“Cryptocurrencies were created for that”: Paraguay toughens its stance on cryptocurrencies and sparks reactions

The Superintendency of Securities informed investors and the general public that cryptocurrencies are neither registered nor authorized by this entity or by the Central Bank of Paraguay (BCP). It also reminded that they do not have legal tender status in the country nor state backing.

“Luckily, cryptocurrencies don’t need your approval to be used hahaha,” “Just like the dollar, it’s not legal tender here nor backed by the country… that’s why its price is free in the market, right?” “Hahaha, what’s next? McDonald’s announcing that it doesn’t officially back my homemade burger?” and “Cryptocurrencies were created for that,” were the most notable comments on X under the Superintendency’s post announcing Circular No. 006/2025.

The statement explicitly notes that since their value depends solely on the trust that users place in them, cryptocurrencies constitute high-risk investments, with the possibility of losing the entire invested capital.

It also advises citizens to carefully verify the legitimacy of investment offers and their potential risks. Similarly, it urges against dealing with individuals or entities conducting public offerings without the proper authorization, regulation, and supervision of the Superintendency.

Caution

Paraguay has taken a cautious stance on cryptocurrency activities, particularly regarding the risks and challenges they pose. State entities have shown firmness in regulating this sector, with a special focus on controlling the energy consumption linked to crypto mining.

In this context, the National Electricity Administration (ANDE) has intensified efforts to reduce energy losses associated with illegal cryptocurrency mining. According to official data, the country recorded an average total loss of 26% until 2020. However, since 2021, these levels have begun to rise, reaching a peak of 28.5% in 2023.

In response to this situation, the Paraguayan government seeks to mitigate the impact of crypto mining on the electrical system, strengthening supervision and sanction measures to prevent irregularities in energy consumption.