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Panama’s crypto-bill will make it ‘compatible’ with crypto-assets, digital economy

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As El Salvador became the first country to make Bitcoin legal tender, another Central American country took a step towards recognizing the importance of cryptocurrencies. The Republic of Panama, recently introduced its cryptocurrency bill.

Panamanian Congressman Gabriel Silva, in a tweet thread, announced the same. According to him, the bill aimed to make Panama a “country compatible with the digital economy, blockchain, crypto assets, and the internet.”

Moreover, use cryptocurrencies remained optional for individual citizens as well as businesses as per the said bill, which did not compel anyone to use Bitcoin, unlike in El Salvador. It also incorporated taxes, fees, and other tax obligations that could be settled using these digital assets. Moreover,

Silva released a video in the local language on Twitter, discussing the bill’s provisions.

Here a is a translated excerpt from the video.

“The bill is quite simple. Firstly, it seeks to give certainty and legal security to crypto assets, such as cryptocurrencies, in Panama. The second thing the project seeks is to attract companies, attract investment, and help foster entrepreneurship in Panama that focuses on the digital economy.”

He called it “positive” since it would play a part to “promote and create jobs.” He then went on to add,

“And the third thing it seeks is to expand the number of financial services offered in Panama, in order to ensure better prices for everyone “

What’s more Silva also shared a document, titled, “Crypto Law: What Makes Panama compatible with the Digital Economy, the blockchain, crypto actives, and the Internet,” which further sheds light on this topic. It discussed the importance of cryptocurrencies, mentioning,

“Cryptoassets like Bitcoin serve as potential long-term investments and shelter against inflation. Crypto assets are also divisible into many more units than traditional assets.”

Silva went on to mention, the list of reasons why Crypto Law is important for Panama. It includes, “Job creation, New ventures, Governmental transparency, Supports innovation, Decentralize, Expand the offer of financial services and products, and much more!”

In addition to this, Felipe Echandi, a local crypto entrepreneur who worked with Silva in the drafting of the bill opined,

Panama finally has a bill of crypto and world-class digital economy! This is an opportunity to really insert ourselves as a country to the internet.”

Silva had been promoting a crypto narrative for a couple of months now and had also expressed his support for the El Salvador President, earlier. What’re more, the country has been taking small steps toward becoming a crypto-friendly nation over the years. For instance, in October 2020, the National Assembly of Panama laid down the  foundation to discuss a draft bill on the use of cryptocurrencies.

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Shubham is a full-time journalist at AMBCrypto. A Master's graduate in Accounting and Finance, Shubham's writings mainly focus on crypto-regulations across the United States and Europe. Also, a die-hard Chelsea fan #KTBFFH.