Paraguay President's Office Denies Bitcoin Legal Tender Claim

Paraguay's President Santiago Peña's office has issued a warning about "irregular activity" following a post on the social media platform X that falsely claimed the country had recognized Bitcoin as legal tender. The post, which appeared on Peña's personal account, stated that Paraguay had established a Bitcoin reserve worth $5 million and provided a wallet address for investors to "secure their stake."

In response, the official account of the President's office quickly issued a statement asking followers to dismiss any recently published content without official confirmation. The office also mentioned that they were working with the social media platform to clarify the situation and ensure that the public only considers information issued through official channels.

This incident comes at a time when some countries in Central and South America are reportedly considering following El Salvador’s example by adopting Bitcoin as a reserve asset. El Salvador, under the leadership of President Nayib Bukele, began recognizing cryptocurrency as legal tender in 2021. However, the status of Bitcoin in El Salvador remains somewhat of a legal gray area following a deal with the International Monetary Fund announced in December 2024.

This developing story highlights the importance of verifying information from official sources, especially in the context of financial and legal matters. The incident also underscores the potential risks and uncertainties associated with the adoption of cryptocurrencies as legal tender, as seen in the case of El Salvador. As more countries consider similar moves, it is crucial for governments to provide clear and accurate information to the public to avoid confusion and misinformation.