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Panama Joins In Legalising Bitcoin & Crypto

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Cesc0410
@chekohler
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3 min read

Hot on the heels of the announcement that the Central African Republic would legalise bitcoin as a legal tender currency it looks like other smaller countries are also looking to jump on the bandwagon.

When El Salvador pulled the trigger we heard rumors of countries in the region like Paraguay and Guatemala would consider bitcoin, but it looks like Panama has beaten them to the punch.

Panama going full crypto

Unlike El Salvador, Panama is taking steps to regulate cryptocurrency assets and the businesses that use them in the country, in a bid to attract some capital to the central American nation.

Renowned for being tax and offshore business-friendly, Panama has always opened itself to be exploited by big business, so a move like this to provide the entire shitcoin market with free reign in the country is not surprising.

The National Assembly of the country, which is the highest legislative organization in Panama, has taken the first step toward regulating the use of cryptocurrencies with a new law

“Law that regulates the commercialization and use of crypto assets, the issuance of digital value, the tokenization of precious metals and other goods, payment systems and other provisions.”

Vague on details

We don't yet have the full details of the bill and it's still to be voted on and things could change, so at the moment we're all speculating.

Of the details we do have I appreciate the fact that it would be an optional method, so crypto usage would under the terms of his bill, be used with merchants, however, merchants are free to reject payments in crypto.

I am not a fan of forcing people to use anything they don't want to use, so this detail to me is important. Something I think El Salvador and CAR didn't get right.

The other big deal from the bill is the removal of all capital gains on cryptocurrency. I think this is the primary goal of the bill and the rest is just padding. To me, having to capital gains will see many crypto companies flock to set up their base and register there, I am sure US companies will be looking at this with sharks teeth.

In addition, crypto-rich individuals who want to enjoy their gains will probably look to set up in the likes of Panama. This can bring in foreign investment and stimulate spending in the country.

The working bill

So the bill needs to be presented to parliament and if it's approved the president can sign it into law and Panama can start moving towards a bitcoin standard, if they so choose.

Sources:

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