Panama has given its first approval for the bill regulating cryptocurrencies. Panama Congressman Gabriel Silva is the leading figure in the bill that will pave the way for the use of crypto assets as a means of payment.
While emphasizing the importance of crypto law in two aspects, Gabriel Silva sees the first as the legal stabilization of cryptocurrencies in Panama, and the second as the development of the crypto money industry and the increase in employment in the country.
Crypto law, approved by the Panamanian National Assembly, allows the use of cryptocurrencies in individual and business transactions. In addition, another important name in the preparation of the bill, Felipe Echandi, pointed out that a capital gains tax will be provided from cryptocurrencies with this bill, and said that the purpose of the law is to create collective terms of use for crypto assets.
Felipe Echandi also touched on the country’s digitization process, saying that Panama is well positioned to become a digital identity provider for the rest of the world. With the crypto law, it is aimed to digitize the identities of citizens and legal entities in Panama with Blockchain technology. This is thought to enable Panama to integrate with smart contracts and decentralized autonomous organizations (DAO).
What’s next in Panama crypto law?
The draft on cryptocurrencies was approved by the Panamanian National Assembly yesterday and submitted to the president of the country for approval. The bill was also passed by the Panamanian Legislature’s Economic Affairs Committee before final approval. Now Panama President Laurentino Cortiso is in the process of considering the law. If President Cortiso approves the bill, the cryptocurrency law will be approved in Panama.
After El Salvador adopted Bitcoin as a legal tender last year, many developing countries are preparing bills to use cryptocurrencies more effectively. Finally, the Central African Republic made Bitcoin legal.
It is thought that these countries, which are experiencing structural problems in economic terms, are adopting cryptocurrencies to protect against inflation and reduce their dependence on the US dollar.
