Will Panama Legalize Bitcoin As National Currency?

Introduction

Many countries, including Panama, have recognized Bitcoin as a legitimate means of payment. By legalizing this digital currency, Panama will make its government more transparent. The country will realize that the money is used worldwide and will not prohibit its use for any commercial or civil operation. It will be an enormous step forward for the country if this happens. The price of this virtual money is rapidly increasing in the UK as its worth just surged. The price of Bitcoin is rapidly increasing in the UK as its worth just surged.

El Salvador

After a recent announcement by El Salvador’s government, Bitcoin is now officially a legal tender in El Salvador. Although the move has sparked a lot of excitement worldwide, the process has not been without problems. Some critics argue that the decision to make Bitcoin legal tender will leave the country’s older and less technologically savvy population behind. A recent survey found that over 50% of Salvadorans do not have access to the internet and have not yet heard of Bitcoin. 

Despite this, many citizens of El Salvador are skeptical about the new digital currency. In a recent Central American University Jose Simeon Canas survey, 71.2 percent of respondents preferred that residents continue to use traditional currencies. Furthermore, 66.7 percent of respondents wished to repeal the law.

Panama

A new bill in Panama calls for recognizing cryptocurrencies as payment methods. This would allow citizens to pay taxes and fees with them. However, it would not make these currencies legal tender. The bill does allow for the tokenization of precious metals and other goods. Other countries like El Salvador and the Central African Republic have already approved using Bitcoin as an official currency. Even though Panama is now legalizing cryptocurrency, it will not make them legal tender per se.

The Panamanian National Assembly has approved the bill. It will now be sent to President Laurentino Cortizo for signature. It is unclear what role the banks will play under the new rules. While Panama has a high Internet penetration rate, only one-fourth of citizens own bank accounts. This new bill could help cryptocurrencies become more accessible to the unbanked population. The country already has a Blockchain-based exchange known as CryptoSPA. However, it will take a while before traditional institutions are ready to accept cryptocurrencies.

The central African Republic

The Central African Republic (CAR) has passed a bill to make Bitcoin and other cryptocurrencies legal tender in the country. This is a big step forward for the country, plagued by a lack of digital currency for years. The bill has passed unanimously, allowing for bitcoin and other cryptocurrencies to be accepted alongside the country’s existing currency. The CAR government posted the news on its official Facebook page, stating that the law will benefit the country’s development and economic performance.

The Central African Republic has become the first African country to legalize the use of Bitcoin, making it an official currency. The bill, which passed the National Assembly last week, will allow citizens to use Bitcoin and other cryptocurrencies for commercial transactions alongside the country’s CFA franc. The legislation also provides tax contributions to be made in cryptocurrencies through platforms recognized by the government.

Venezuela

In the past few years, Venezuela has been hit by a severe economic crisis, with the country losing more than 70 percent of its currency value over the past year alone. During this time, Venezuelans have turned to Bitcoin as a viable alternative currency. Unlike traditional currencies, Bitcoin does not require physical bank accounts and can be sent directly from a computer or mobile device. In Venezuela, many local businesses are moving into cryptocurrency to survive hyperinflation and currency devaluation.

Currently, 90 percent of Venezuelan remittance transactions go through international banking services. However, the vast majority of Venezuelans do not own U.S. bank accounts, and international bank accounts held by Venezuelan citizens have been closed due to sanctions. As a result, the use of open and public cryptocurrencies provides a more efficient, inclusive, and direct payment method.

Conclusion

The new law aims to promote the growth of digital currencies like Bitcoin and Ethereum in Panama and encourage investment and job creation. It will also require companies to apply for licenses with the Panamanian Department of Commerce and be subject to anti-money laundering, anti-terrorism, and anti-proliferation laws. Panama’s president must sign the legislation before becoming law. It is expected that regulations will be issued in 2022.