Paraguay Clarifies President’s Twitter Hack, Denies Bitcoin Adoption
- Twitter hack falsely declared Bitcoin as Paraguay’s legal tender.
- Authorities quickly denounced the fabricated announcement.
- No financial repercussions for Bitcoin or Paraguay’s economy.
Paraguay’s government confirmed that President Santiago Peña’s Twitter account was hacked when a false announcement claimed Bitcoin as legal tender. Authorities reiterated that the Guaraní remains Paraguay’s official currency.
The event underscores the impact of cybersecurity breaches on public trust and financial markets. Initial reactions showed market uncertainty, but there was no long-term effect on Bitcoin’s legality or valuation.
Authorities revealed that the President’s social media account was infiltrated, leading to the publication of incorrect information. The fraudulent post included claims about a $5 million national Bitcoin reserve, which were unsubstantiated.
No decision has been taken towards Bitcoin as a legal tender. The only legal currency remains the Guaraní, and there is no evidence-backed decree or law to support otherwise.
No institutional or financial changes occurred, and government spokespersons strongly dispelled rumors of Bitcoin integration into Paraguay’s financial system. The Guaraní continues as the country’s sole legal tender, with no moves toward cryptocurrency adoption.
Market reactions included speculation, but official regulatory and legal conditions remained static. The incident serves as a cautionary tale on the vulnerabilities of digital communication in political spheres.
Paraguay’s stance on Bitcoin as legal tender mirrors other nation-state policies, excluding El Salvador. Historically, similar hoaxes have not resulted in genuine policy shifts. Robust cybersecurity is crucial to prevent such misinformation from influencing public and market perceptions.
