Paraguay CBDC
Executive summary
Paraguay’s central bank is in a research and pilot phase on digital money: it created a Working Group on Digital Currency, approved regulations to monitor international CBDC initiatives in December 2021, and has described a potential CBDC as a "secure means of payment" complementary to the guaraní while warning that private cryptocurrencies are not legal tender [1] [2]. The BCP approved a "Digital Economy" pilot program in May 2024 to oversee related work, and hosted high‑level CBDC discussions in December 2022, signaling continued official attention rather than an imminent launch [3] [1].
1. What Paraguay’s central bank says — cautious study, not deployment
The Central Bank of Paraguay (BCP) has publicly framed its approach as analysis and monitoring: regulations approved in December 2021 set up activity to "monitor the different international initiatives on CBDC, as well as analy[z]e the implications of an eventual implementation" and the bank said a CBDC "could be a secure means of payment" aligned with digitization while distinguishing it from private crypto risks [1] [2]. The bank has also run high‑level meetings to discuss CBDC issues, indicating study and stakeholder engagement rather than an operational rollout [1].
2. Official stance on cryptocurrencies and monetary sovereignty
BCP statements emphasize that cryptocurrencies like bitcoin are not legal tender, have no "mandatory cancellation force" in Paraguay and thus do not enjoy state guarantees; the same statements explain the motivation to explore a CBDC is to provide a state‑issued digital means of payment complementary to the guaraní [2]. Reporting repeated this framing, portraying the bank as warning citizens about private crypto while pursuing a state alternative [4] [2].
3. Concrete institutional steps taken so far
Actions cited in reporting and advocacy trackers include the creation of a Working Group on Digital Currencies, the December 2021 regulatory decision to monitor CBDC initiatives, a December 2022 high‑level meeting, and the May 2024 approval of a "Digital Economy" pilot program by the BCP board to be overseen by the Superintendency of Banks—evidence of sustained institutional capacity building and experimentation [1] [3] [2].
4. How Paraguay’s timeline compares regionally
Observers note Latin America is active on CBDCs and that Paraguay’s working group and pilot program put it among regional actors studying adoption; analysts cite Paraguay alongside other countries evaluating CBDCs though not among the first movers to implement a retail CBDC [5]. Available sources do not mention an official launch date or formal decision to issue a Paraguayan CBDC.
5. Possible motivations — payments, inclusion, remittances
The BCP explicitly links motivation to using CBDC "as a means of payment" and to complement national payment systems while preserving transaction security [2]. Broader research — cited regionally in BIS/IMF materials — connects CBDCs to lowering remittance costs, financial inclusion and modernization of payments, factors likely informing Paraguayan deliberations [6] [7]. Sources do not provide a detailed Paraguayan cost‑benefit study in public reporting.
6. Risks and design tradeoffs the BCP is watching
The central bank’s public language stresses proceeding "cautiously, openly, and collaboratively" and flags security and the need to preserve transaction safety—implicit recognition of cybersecurity, privacy, and financial stability tradeoffs typical in CBDC design [1] [2]. IMF and BIS training materials referenced by trackers highlight those same macro‑financial and operational issues, suggesting Paraguay’s work follows global learning priorities [7] [8] [6].
7. Where reporting differs or leaves gaps
News outlets and trackers consistently report Paraguay is researching and piloting; none of the provided sources assert Paraguay has issued or decided to issue a national CBDC in production. Some coverage frames the central bank’s messaging as "caution" or "FUD" toward private crypto [4], while official BCP language frames it as consumer protection and monetary‑policy clarity [2]. Available sources do not detail the technical architecture, retail vs. wholesale scope, privacy model, or governance rules for any Paraguayan CBDC.
8. Bottom line for readers and stakeholders
Paraguay has moved from study to pilot‑level activity but has not committed to a live national CBDC in the sources provided; the BCP emphasizes controlled, security‑focused exploration and warns that private cryptocurrencies are not state money [1] [2] [3]. Stakeholders should expect further public reports or regulatory steps before any issuance; current reporting documents institutional preparation rather than deployment [1] [3].