As global acceptance of cryptocurrencies continues to rise, Panama has proposed a new law recognizing BTC and other digital currencies as alternative payment methods, following a move by El Salvador.
Panama has proposed a law on cryptocurrencies
Panamanian pro-crypto congressman Gabriel Silva noted on Twitter that a new bill would allow the free use of cryptocurrencies in a Central American country.
According to Silva, the bill was prepared by various parties with the help of industrial and technological experts. He also said that the legislation was in line with the established policies set by the Financial Action Task Force (FATF).
According to the congressman, the new bill is designed to make the country compatible with cryptocurrencies, blockchain technology and the Internet. In addition, Silva believes that something of this magnitude would positively contribute to the creation of thousands of jobs, attract foreign investment in Panama and also enhance the transparency of government activities.
The bill is designed to encourage innovation and expand the country’s financial services beyond its current state, with the document stating that Panama recognizes BTC as an alternative payment method that can be used for commercial and civilian operations.
According to the bill, cryptocurrencies would be recognized as an alternative payment method, as this asset class is aimed at providing efficient, fast and cheap cross-border settlement.
This development comes when Salvador became the first country in the world to adopt BTC as legal tender
Although the Panamanian cryptocurrency bill was backed by Salvador’s adoption of BTC as legal tender, the former country’s initiative has a different approach from what the Salvadoran government is offering.
According to yesterday’s reports, El Salvador made it mandatory for merchants within its jurisdiction to accept BTC and the US dollar (USD) as two forms of payment. If they plaster, they risk sanctions.
However, Panama’s new law only seeks the freedom to use BTC and other cryptocurrencies as if they were using the country’s official fiat currency.
Over the years, cryptocurrencies have grown from an insignificant asset class to a force to be reckoned with, prompting regulators to consider regulating them. The need to adopt cryptocurrencies became even more attractive to Latin American countries after Salvador took a major step in adopting BTC as legal tender.
Meanwhile, a cryptocurrency bill has been submitted to the National Congress in Paraguay in an effort to create an attractive regulatory environment for cryptoactive assets and industry as a whole.