Central American lawmakers are optimistic about the mainstream adoption of cryptocurrencies, with Panama becoming the region’s second country to introduce legislation seeking legal status for Bitcoin and Ethereum.
On September 6, MPs in the country submitted a bill to regulate cryptocurrencies in the country. The country aims to be ‘compatible with blockchain, crypto assets, and the internet,’ according to the draught law.
Panama’s action comes just one day after El Salvador approved Bitcoin, making it legal tender. However, Panama’s draught legislation differs significantly from El Salvador’s, which requires the use of Bitcoin.
While El Salvadorian firms must accept Bitcoin payments, while they can use government infrastructure to rapidly convert Bitcoin to currency, Panama will give its citizens the option.
However, the most notable aspect of Panama’s crypto draught bill is that the government will allow its people to pay taxes in cryptocurrencies such as Bitcoin and Ethereum. This is the most essential affirmation since the government is willing to accept digital currencies.
According to a tweet by Panamanian pro-crypto politician Gabriel Silva, the proposed regulations have the potential to assist the country create thousands of employment, as well as new investment prospects.
He went on to say that if the regulations are implemented, Bitcoin will be recognised as an alternative global payment mechanism for ‘any civil or commercial action not banned by the legal system of the Republic of Panama.’ He also believes that the crypto legislation will increase transparency in government.