Panama looks set to adopt Bitcoin (BTC) and cryptocurrencies as a means of payment. Indeed, on Thursday 28 April, Panama’s National Assembly validated the draft law on the regularisation and use of cryptocurrencies. If the president signs the bill, then it will be officially adopted.
Cryptocurrencies soon approved in Panama
After the Central African Republic and Cuba, Panama becomes the latest country to show its support for cryptocurrencies.
Indeed, this Thursday, April 28, the Panamanian National Assembly validated the draft law aimed at regulating the use of cryptocurrencies in its territory, whether for private or public use.
The bill covers both the trade and use of cryptocurrencies, the issuance of digital securities, new payment systems as well as the tokenisation of precious metals.
If this legislation were to be implemented, Panamanians would be able to use crypto-currencies as a means of payment for all their daily transactions, provided that they comply with the country’s laws.
According to Gabriel Silva, a member of Congress in Panama’s National Assembly, this project is not limited to financial use:
“The bill goes beyond just regulating tokens, it looks beyond the use of Bitcoin as a legal tender, as El Salvador was able to do with its measure passed in September. “
As such, we can read in the cryptocurrency bill:
“[…] The use of distributed ledger technology and blockchain in the digitisation of the identity of natural and legal persons in Panama and as a means to make the public service transparent. “
To be validated, however, the bill must be validated by Panamanian President Laurentino Cortizo. The latter can, under Panamanian law, decide to veto the bill or to validate it.
A positive step for the disenfranchised citizens
As it stands, the project could also allow Panamanian citizens to pay their taxes in cryptocurrencies. A measure frowned upon by experts, for whom this could reinforce Panama’s reputation as a country lacking in financial transparency.
This was confirmed by Romain Dromard, managing director of the financial investment advisory firm K&B Family Office:
“Panama was already in a bad position and these payment methods evade the due diligence processes that international organisations require Panama to adopt. “
However, according to various experts, this new set of laws could greatly help the unbanked. Indeed, Panama is a country where the Internet is well developed, but where only a quarter of the population has a bank account.
Moreover, it could also open up a positive avenue for banks that have so far been rather unfavourable to the use of cryptocurrencies.
However, these new measures still need clarification as to their likely wider use, especially for businesses, as cryptocurrencies as a whole are exposed to market volatility
In any case, according to Gabriel Silva, the law “will help Panama become a centre of innovation and technology in Latin America. “
