After El Salvador announced Bitcoin as legal tender, another Central American nation, the Republic of Panama has announced cryptocurrency will become legal tender.
The draft bill document introduced by pro-crypto Congressman Gabriel Silva said:
“Today we present the Crypto Law. We seek to make Panama a country compatible with the blockchain, crypto assets, and the internet. This has the potential to create thousands of jobs, attract investment and make the government transparent.”
The new legislation intends to recognize crypto assets like Bitcoin, Ether as an alternative global payment method for any civil or commercial operation not prohibited by the legal system of the Republic of Panama.
Silva said that the new draft bill was prepared in collaboration with Panamanian citizens and a multidisciplinary team, including industry and technology experts. The legislation was created taking into consideration important guidelines provided by international organizations such as the Financial Action Task Force.
Panama’s new crypto bill does not intend to force obligatory Bitcoin acceptance. In contrast to the government of El Salvador, which forces local businesses to accept Bitcoin in exchange for goods or services alongside the United States dollar.
Instead, the legislation calls to establish freedom to use cryptocurrencies like Bitcoin and Ether in Panama.