Will Panama Follow El Salvador's Footsteps with its Own 'Crypto Law' Project?

Will Panama Follow El Salvador's Footsteps with its Own 'Crypto Law' Project?

Do you think Panama will follow El Salvador's footsteps with its own 'Crypto Law' project? Keep reading this article and find out what specialists think. Read on!

Do you think Panama will follow El Salvador's footsteps with its own 'Crypto Law' project? Keep reading this article and find out what specialists think. Read on!

After El Salvador became the first Latin American country to legislate a Bitcoin Bill, several countries joined the initiative. The most recent is the Republic of Panama, the pro-crypto Panamanian congressman Gabriel Silva highlighted that "the new legal initiative has the potential to generate thousands of jobs, create new sources of investment", as well as make the government "more transparent ".

With the aim of making the country "compatible with blockchain, crypto assets and the Internet" are working on the project.

After El Salvador became the first Latin American country to legislate a Bitcoin Bill, several countries joined the initiative.

According to the preliminary document shared by Silva, the new legislation aims to recognize crypto assets such as Bitcoin as an alternative global payment method for "any civil or commercial operation not prohibited by the legal system of the Republic of Panama."

The authors of the bill emphasized that cryptocurrencies allow fast and low-cost payments, allowing them to finalize a financial transaction "regardless of the distance between the parties and the volume of the transaction."

Panama's current constitution prohibits the government from requiring only certain currencies as legal tender, which could facilitate the incorporation of bitcoin as a currency.

Panama does not have a central bank and officially adopted the US dollar in 1904 after a monetary agreement between the two countries known as Taft-Arias. Balboa, a local currency, also circulates alongside the dollar and has been pegged to North American currency at a one-to-one exchange rate since its introduction.

Panama's current constitution prohibits the government from requiring only certain currencies as legal tender, which could facilitate the incorporation of bitcoin as a currency.

In its last list of non-cooperative jurisdictions published in 2021, the European Union included Panama as a tax haven along with the Virgin Islands and Seychelles, among other jurisdictions.

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