Panama Introduces Bill to Legalize Bitcoin, Ethereum

Central American lawmakers are bullish on the mainstream adoption of cryptocurrencies as Panama became the second country in the region to move a bill in parliament, seeking legal status for Bitcoin and Ethereum.

The country’s lawmakers introduced the bill on September 6 that aims to regulate cryptocurrencies in the country. According to the draft law, the country wants to become ‘compatible with Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term, crypto assets and the internet.’

Pro-Crypto Central American Countries

Panama’s move came the day before El Salvador legalized Bitcoin, making it a legal tender. However, Panama’s draft laws are very different from El Salvador’s, which makes the adoption of Bitcoin mandatory.

While El Salvadorian businesses must accept Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term in Bitcoin, they can opt for government infrastructure to change the Bitcoin into fiat instantly. Thus, Panama will give the choice to its citizens.

But, the most highlighted part in Panama’s crypto draft bill is that the country will allow its citizens to pay taxes in cryptocurrencies, like Bitcoin and Ethereum. This can be seen as the most important validation as the government itself is willing to accept digital currencies.

According to a tweet by Panamanian pro-crypto lawmaker, Gabriel Silva, the proposed laws have the potential to help the country create thousands of jobs and stressed that it has the potential to create new investment opportunities.

He added that, if passed, the laws will recognize Bitcoin as an alternative global payment method for ‘any civil or commercial operation not prohibited by the legal system of the Republic of Panama’. Moreover, he thinks that the crypto laws will make the government more transparent.

Hoy presentamos la Ley de Cripto. Buscamos hacer a Panamá un país compatible con el blockchain, los criptoactivos y el internet.

Esto tiene el potencial de crear miles de empleos, atraer inversión y transparentar el gobierno Pueden ver el proyecto aquí: https://t.co/6FoKdwbkwR pic.twitter.com/xDxfyS9BYI — Gabriel Silva (@gabrielsilva8_7) September 6, 2021

Other Central American countries are taking an interest in legalizing cryptocurrencies. Honduras, which is a neighboring country to El Salvador, recently installed its first Bitcoin ATM, enabling citizens to purchase cryptocurrencies using local fiat.