Panama Establishes a New Bill for Crypto Adoption

Sophia Cruz•Wednesday, September 8, 2021•1 min read

Following El Salvador’s Bitcoin adoption strategy, Panama is the second country in Central America to embrace and join the crypto space. On Monday, the Republic of Panama proposed a bill to regulate cryptocurrencies as an alternative payment method. This bill aims to modernize the country’s financial status by making it “compatible” with the blockchain, crypto assets, and the internet.

Panama’s pro-crypto congressman, Gabriel Silva, had mentioned that this new bill could establish thousands of jobs, offer a unique investment portfolio and heighten government transparency. Silva also said that the legislation was carefully prepared by different parties, like the Panamanian disciplinary citizens as well as industry and technology experts in the country, who will ensure that it complies with the Guidelines of the Financial Task Force (FATF).

Unlike in El Salvador, where bitcoin adoption is going to be compulsory, this legislation establishes the freedom to use cryptocurrency as an alternative payment method. But the most anticipated part of Panama’s new bill is that citizens can use cryptocurrencies, like Bitcoin (BTC) and Ethereum (ETH), to pay taxes to the government. This shows that the government is amenable to accepting digital currencies.

Along with efforts by El Salvador and the Republic of Panama, to move up in the crypto industry, more nearby countries are also exploring cryptocurrencies, and taking an interest in regulating them. Honduras, another Central American country, has recently set up its first Bitcoin ATM, that allows citizens to buy BTC and other cryptocurrencies, using the local currency. These significant moves will surely stimulate the mainstream adoption of cryptocurrency.

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ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.