Paraguay CBDC Tracker

Paraguay is currently in the research phase. The Banco Central del Paraguay approved regulations to “monitor the different international initiatives on CBDC, as well as analyz[e] the implications of an eventual implementation of some type of CBDC [in Paraguay].” The central bank has also hosted multiple conference to discuss CBDCs. However, it has not moved beyond this exploratory phase.

CBDC History and Development

The Banco Central del Paraguay first published draft regulations for the creation of a CBDC working group in April 2021. The working group's goals were to monitor international CBDC initiatives, evaluate studies related to CBDCs, and review central bank activity.

In August 2021, the Banco Central del Paraguay announced it would host a conference in September with “the aim of expanding Paraguayan society's knowledge of CBDCs.” The September conference covered the rise of CBDCs around the world and also the steps taken by other central banks.

Around the same time as the conference, the Banco Central del Paraguay also published a report titled, “CBDC Information.” The report largely offered a global overview of CBDC research and development. It emphasized that the Banco Central del Paraguay should “proceed cautiously, openly, and collaboratively.”

In December 2021, the Banco Central del Paraguay approved regulations to “monitor the different international initiatives on CBDC, as well as analyz[e] the implications of an eventual implementation of some type of CBDC [in Paraguay].” The central bank added that “A CBDC could be a secure means of payment in line with the broader digitalization of people's daily lives, with the advantages of technology and without the risks associated with private cryptocurrencies.”

In May 2022, the Banco Central del Paraguay published a paper exploring the implications of issuing a CBDC. The paper ultimately concluded that “a CBDC without restrictions” would be “the most disruptive option.” A working group at the central bank also met in May to discuss CBDCs, among other topics and the Banco Central del Paraguay hosted its second CBDC conference with the “aim of analyzing the economic and legal viability of” CBDCs.

In October 2022, Banco Central del Paraguay board member Fernando Filártiga spoke at an event hosted by the International Monetary Fund and World Bank Group. CBDCs were discussed among other topics. It was revealed that the Banco Central del Paraguay had established a technical committee on CBDC, coordinated at the Board level, and that the project is in the exploratory phase.

The Banco Central del Paraguay hosted a “high-level meeting on CBDC” in December 2022. The event included presentations from private-sector stakeholders and policymakers.

Human Rights and Civil Liberties Concerns

A full analysis of Paraguay’s treatment of civil liberties is forthcoming.

In the meantime, for additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.