Panama To Recognize Bitcoin As Payment Alternative, Issues New Regulations

Panama To Recognize Bitcoin As Payment Alternative, Issues New Regulations

Image Credit: Pixabay.com

A new bill that aims at recognizing Bitcoin as another payment method has emerged in Panama. The bill will also give residents the freedom to use cryptocurrencies. Amidst El Salvador adopting BTC as legal tender, a Central American country is trailing the same path. The intent is to give residents of the country the freedom to start using cryptos like Ether (ETH) and BTC.

The Republic of Panama on September 6th received a bill on cryptocurrency regulation. The bill aims to make Panama compatible with the internet, blockchain, and crypto-assets.

Gabriel Silva posted an announcement on Twitter, the bill can generate lots of job opportunities. He added that the legal initiative could create new sources of investments and make the Panama government more transparent.

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Bitcoin is a decentralized digital currency without a single administrator or central bank. It’s represented with BTC and be sent from user to user on the peer-to-peer bitcoin network without intermediaries.

In comparison, Ethereum is also a decentralized, open-source blockchain with smart contract functionality. In addition, it has a native token Ether represented with ETH.

Silva’s Draft Bill Document

A draft bill document reveals the intention of the new legislation to recognize cryptocurrencies like BTC as a payment option. Silva distributed the document, and the cryptos will serve as a global alternative payment method. This will be for all commercial or civil operations not barned by the Republic of Panama legal system.

According to Silva, they prepared the new draft bill in collaboration with the citizens of Panama and a multidisciplinary team.

They also collaborated with experts in technology and industry. In addition, the authors of the legislation considered important guidelines as provided by the international organizations like the task force and financial action.

They emphasized that cryptos allow low-cost and fast payment enabling them to complete all financial transactions. This is irrespective of the gap between transaction volume and the parties.

El Salvador’s Bitcoin Adoption And Panama’s Crypto Bill

The El Salvador government requires local businesses to receive Bitcoin alongside the USD in exchange for goods and services. But Panama’s new legislation doesn’t make Bitcoin acceptance obligatory; it only establishes the freedom of crypto use in the country. Telemetro, the local TV network, reported.

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More Countries located in Central America now join the crypto industry amidst El Salvador’s adoption of Bitcoin as legal tender.

Bitcoin has taken a big blow and now it's trading downward | Source: BTCUSD on TradingView.com

A company situated in Honduras has installed its first Bitcoin ATM towards the ending of August. These BTC ATMs allow users to purchase ETH and BTC with lempira, the country’s local fiat currency.

Featured image from Pixabay, chart from TradingView.com
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