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Bitcoin Paraguay is charting its own course in Bitcoin adoption, drawing inspiration from El Salvador while focusing on local community empowerment through workshops and events. With a rapidly expanding network of semi-independent groups, they aim to enhance Bitcoin education and merchant adoption, positioning Paraguay as a potential leader in the Bitcoin movement.
Something special regarding Bitcoin is brewing in Paraguay. While El Salvador is an influence and inspiration, the country is not following in its exact footsteps. Paraguay is setting its own path. At the helm of the revolution is a national organization that empowers local organizations. Bitcoin Paraguay’s “goal is to connect the community in different parts of the country, from Asunción, Encarnación, Villarrica and Ciudad del Este, through workshops, face-to-face and virtual events, meetings and conferences.”
Blink interviewed founding member Jan Kotas to learn more about Bitcoin Paraguay’s plans, what they’ve accomplished so far, and why they think the country is ideal for Bitcoin adoption.
Even though Bitcoin Paraguay started operations in May, the work is already advanced. What began as a group chat became a fully-fledged network in just 6 months. About the local organizations, Jan explains. “We currently have four semi-independent communities under the Bitcoin Paraguay organization. The largest is located in the capital, Asunción, followed by the second largest in Ciudad del Este. We also have two smaller communities in Nueva Colombia and Encarnación.”
Exactly how does Bitcoin Paraguay help those communities? According to Jan, the organization is “dedicated to empowering local leaders to establish their own Bitcoin communities. We share our know-how, materials, and infrastructure with them. Additionally, we help increase their visibility, provide essential resources, and assist them in coordinating activities with other local communities.”
Bitcoin Paraguay knows that adoption is a process. In an article explaining its vision and structure, the organization says, “we call this stage 'Planting Seeds' because it will take some time for the network effect to kick in. With a good framework, in a year or two, we can grow a new generation of Bitcoiners.” What does this mean in practice? Back to Jan, “over time, we hope to secure more funding from sponsors to cover our costs and provide adequate education to these local leaders, enabling them to further share their knowledge.”
As El Salvador embraced Bitcoin as legal tender, one of the country’s characteristics was that it didn’t have a currency in circulation. Since 2001, the colón disappeared and El Salvador adopted the dollar. In Paraguay, it’s a whole different ball game, because the guaraní is still in play. However, the situation is nuanced, since the guaraní “is one of the oldest currencies in circulation in Latin America, but it has also faced turbulent inflationary periods. This has led many locals to seek alternative stores of value.”
According to Jan, this fact will actually help Paraguay with Bitcoin adoption. “Many Paraguayans are accustomed to dealing with different currencies, especially U.S. dollars. I don’t have a definitive sense from the locals that they feel too bound to their local currency, but this is just my personal perception, and I haven't conducted formal research on it. However, I believe that if locals see an alternative that serves them better, they will gladly adopt it.”
That might be true for the population, but, what about the government? What’s their incentive for abandoning the convenience of inflation and the exorbitant privilege of the printing press? The Paraguayan government might’ve been lenient towards the dollar, but that doesn’t guarantee their policy towards a superior currency will be similar. Could politicians see the strategic advantage Bitcoin represents?
The Bitcoin Paraguay organizer is extremely optimistic about it, “regarding the adoption of Bitcoin as legal tender, I think it would be much more challenging for the country if it were using U.S. dollars (or a currency pegged to it) due to international pressure. Just look at the pressure El Salvador is currently facing from the IMF; I’m sure there are many behind-the-scenes dynamics at play that aren't visible to the public.”
This is Jan’s origin story:
“I’m from the Czech Republic, where there is a strong local organization called Jednadvacet (TwentyOne in English). I was involved with the organization from the beginning and witnessed its rapid expansion, helping to connect countless individuals. Currently, there are 38 local sections within the network, many of which hold regular meetings. I particularly appreciate the concept of "setting a beacon in cyberspace," as there are many people interested in Bitcoin who may never connect without a dedicated space for them to meet.”
This is Bitcoin Paraguay’s origin story:
“Our concept is inspired by successful projects such as Bitcoin Beach, Bitcoin Jungle y TwentyOne.World”
Expanding on that idea, Jan told us:
“Bitcoin Beach and Bitcoin Jungle are a great inspiration for us, particularly in creating local circular economies. Lorena, one of our leaders, works for Bitcoin Beach. We recently began collaborating with Blink Wallet, which was formerly known as Bitcoin Beach Wallet and originally designed to help local merchants accept Lightning payments. We love this app because it was developed based on the real needs of individuals and small businesses, making it an ideal tool for our community members.”
We love the Blink app as well, Jan. We love Blink as well.
One could argue that the network of people supporting and protecting Bitcoin is the most valuable piece of the puzzle. It’s irreplicable. Without us, the perfect money would just be a static ledger. Echoing that sentiment, Jan considers community as “crucial for the success of bottom-up adoption.” This is how Bitcoin Paraguay empowers its members:
“Community strengthens us, facilitates knowledge sharing, and fosters a sense of belonging. This is why we invest so much energy in finding local leaders who can serve as lighthouses in the Bitcoin space, visible to their peers. On our website, you’ll find a comprehensive map of all local communities and an event calendar showcasing activities organized within Bitcoin Paraguay.”
Success in fostering local circular economies is crucial. It’s what sets projects like Bitcoin Beach and Bitcoin Jungle apart. In Bitcoin Paraguay’s case, circular economies are just starting. However, during their Asunción meetups, they’re highlighting local merchants who accept bitcoin payments.
“This not only gives them an opportunity to attract more customers, but it also sends a strong signal to other merchants attending the meetups that accepting bitcoin can be beneficial. Some merchants have already approached us to take advantage of this opportunity. Over time, we plan to give these merchants even more chances to share their experiences with accepting bitcoin, which we believe will inspire others to follow suit.”
This is a great initiative. Merchant adoption is a necessary step. However, the harder part is to convince Paraguayan bitcoiners to spend their precious sats. To achieve that lofty goal, the main incentive might be #5 in the following list.
This list is self-explanatory. For additional details consult this blog post.
Continuing with the lists, Jan sent us one with “a few key goals” for Bitcoin Paraguay in general:
The organization’s biggest community has its own set of plans. This is what Jan told us the Asunción group is working on:
1. “Make our monthly Bitcoin meetups the best in the Bitcoin space – We’re already off to a great start, with about 100 attendees at each meetup (and we only started 4 months ago!). We believe these meetups will help position Asunción as the Bitcoin capital of South America.”
2. “Increase liquidity in our local P2P market – The market is already solid, but boosting liquidity further would provide more opportunities for people to get into Bitcoin without KYC requirements. It also helps local merchants convert enough BTC to cover their expenses.”
3. “Continue orange-pilling local merchants – We’re distributing trifolds with basic info about Bitcoin and how to accept it. This helps onboard more merchants into the ecosystem.”
Wait… 100 attendees per meetup in just four months? Bitcoin Paraguay might be on to something.
Too early to tell.
However…
Bitcoin Paraguay seems like an incredibly organized community. They have clear goals, and they’re tackling the problem from many angles. Plus, they seem to be in the right place at the right time.
It might make sense just to visit Paraguay, in case it catches on.
If enough people do, it might become a self-fulfilling prophecy.
