The now-deleted post, which appeared during mid-North American trading hours, stated that Paraguay had established Bitcoin as legal tender, launched a $5 million BTC reserve, and was opening bond access for crypto assets—a move that would have mirrored El Salvador’s 2021 strategy. The message quickly gained traction on social media before government officials denied its validity.

Government: No Bitcoin Adoption Underway

In response, Paraguayan officials clarified that no such policies are in development and confirmed the post did not reflect the position or actions of the administration.

Authorities said their current focus remains on regulating cryptocurrency mining and virtual asset exchanges, with the goal of strengthening tax collection mechanisms and maintaining oversight of the growing sector.

The government did not immediately confirm whether the incident was a result of a hack or unauthorized access, but internal investigations are reportedly underway.

Context and Caution

The false announcement came amid heightened global interest in sovereign Bitcoin adoption and central bank digital assets. While several Latin American countries have explored crypto integration, Paraguay has not signaled any intention to use BTC as legal tender.

The incident underscores the need for cybersecurity safeguards on official government communication channels and highlights how misinformation in the crypto space can influence markets and sentiment—if only temporarily.

The post Paraguay Denies Bitcoin Legal Tender Claim After Presidential X Account Hacked appeared first on Coindoo.

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Filed under: Bitcoin - @ June 10, 2025 12:01 am