Panama is following El Salvador’s steps and wants to recognize cryptocurrency as a payment method in the country.
On Monday, congressman Gabriel Silva announced the news on Twitter. The new bill aims to make cryptocurrency legal means in Panama. The member of the party Bancada Independiente stated that the country will be “compatible with the blockchain, crypto assets, and the Internet.”
“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 investments, and make the government transparent.”
The new legislation will make virtual currencies like Bitcoin and Ethereum a payment method even for taxes. The draft also proposes to relocate public records to blockchains and “to refer to smart contracts or decentralized autonomous organizations in constitutive documents of legal entities organized in the Republic of Panama.”
The bill is very similar to the one voted in El Salvador, but there are a few differences. Businesses are obligated to accept Bitcoin payments alongside fiat currency. But Panama doesn’t intend to make it mandatory. Residents will have the possibility to choose and decide whether they will accept them or not.
The new legislation was prepared through consultations with Panamanian citizens and a multidisciplinary team, including industry and technology experts. The draft was also built keeping in mind important guidelines provided by international organizations.