On Monday, June 9, 2025, the government of Paraguay issued a warning regarding "irregular activity" detected on President Santiago Pena's official X (formerly Twitter) account. This alert was triggered by a post made on the President's account claiming that Bitcoin had been declared legal tender in the Latin American nation. The post further stated that the country would roll out a $5 million Bitcoin-backed reserve fund and offer a national bond program for crypto-enabled citizens. The government quickly urged citizens to disregard any posts from the account until official confirmation could be provided.
The post in question, written in English, included a Spanish-language statement purporting to be from the government, which added to the suspicions. The announcement also stated that Bitcoin would be integrated into the national financial system alongside the Guarani. However, several inconsistencies raised immediate doubts about the post's legitimacy. These included the absence of any such policy announcement on official government websites or in local media, the non-standard formatting of the supposed decree, and the unusual promotional language targeting investors. The government has stated that Paraguay's national cybersecurity team is collaborating with X to investigate the potential hack.
Currently, the only legal tender recognized by the Banco Central del Paraguay (BCP) is the Guarani. While Paraguay has been exploring cryptocurrency regulation, it has not yet adopted Bitcoin as legal tender. In March 2025, Paraguay and El Salvador signed an agreement to strengthen cryptocurrency regulations, focusing on detecting unlicensed operations and preventing financial crimes. This collaboration involves information exchange and the development of regulatory frameworks.
In April 2024, discussions arose regarding stricter regulations on Bitcoin mining within the country, including a proposal for a temporary ban. These discussions highlight the government's ongoing concerns about controlling cryptocurrency-related activities and protecting consumers from potential risks. Several bills have been submitted since April 2024 focusing on crypto regulation. One proposal even suggested prohibiting activity for 180 days while the government considered how best to control the industry.
In December 2021, a bill seeking to regulate the trading and mining of Bitcoin and cryptocurrencies passed the Senate but did not make Bitcoin legal tender. The bill was intended to increase regulatory security and offer investor protections, but it contrasted with El Salvador's more accommodating approach. The approved bill stated that individuals or companies interested in Bitcoin mining would need to request authorization for industrial energy consumption and apply for a mining license.
The recent incident involving President Pena's X account underscores the growing need for vigilance and robust cybersecurity measures in the digital age, particularly as it relates to cryptocurrency and official government communications. As of now, Bitcoin is not legal tender in Paraguay, and citizens are advised to remain cautious and await official statements from the government.
