Did Paraguay Just Legalize Bitcoin or Was the President Hacked?

Paraguay’s President Santiago Peña tweeted about Bitcoin becoming legal tender, claiming a $5 million reserve. However, signs point to the account possibly being hacked, as the tweet’s language and design do not match official government standards. Peña has not previously supported Bitcoin adoption, and this potential scam raises concerns in the crypto community.

In a surprising move, Paraguay’s President Santiago Peña tweeted that Bitcoin has become legal tender in the country. The announcement included a graphic styled like an official presidential decree, declaring a $5 million Bitcoin reserve. It also hinted at providing access to crypto bonds for citizens engaged with cryptocurrency. However, questions are being raised about the legitimacy of this announcement due to signs that the president’s X account may have been hacked.

The tweet featured a graphic that resembled a formal government decree. But discrepancies in its design and wording have raised eyebrows; it does not align with standard governmental documents from Paraguay. Strange phrasing, such as “etiquetado de tesorería” and “ciudadanos habilitados por criptomonedas,” strikes as informal and unusual in this context, suggesting it could be a fabricated document.

Moreover, the seal on the document appears to be inserted digitally rather than authentically affixed. The layout is generic, further hinting at a lack of authenticity. Using casual language instead of the typical formal legal lexicon raises a red flag—a great example being the aforementioned phrases that are not found in any formal legislation.

Another concerning element is the inclusion of a Bitcoin wallet address in the tweet, which is highly unusual for government communication. This detail closely mimics tactics often employed in cryptocurrency scams, indicating a possible motive behind this tweet to mislead individuals.

Historically, President Peña has not championed Bitcoin as legal tender. His administration has approached cryptocurrency regulation with caution, reflecting concerns over illegal mining practices exploiting the nation’s electric grid, despite allowing Bitcoin mining due to Paraguay’s abundant hydroelectric resources.

Peña, an economist with a background as an IMF advisor, has rather focused on fiscal reform and enhancing digital infrastructure during his tenure—cryptocurrency adoption has not been on his agenda. Prior discussions in Congress regarding regulating crypto mining occurred before his presidency and did not touch on making Bitcoin legal tender.

Currently, there are no known initiatives from Peña’s administration to integrate Bitcoin or any cryptocurrency into national currency frameworks. At this point, the overwhelming evidence suggests that either the presidential account was hacked, or more ominously, a counterfeit narrative was concocted to deceive potential investors in cryptocurrency.