Panama’s legislature has approved a bill to regulate the use of cryptocurrencies in the country.
The crypto law “regulates the trading and use of crypto-assets, the issuance of digital value, tokenization of precious metals and other assets, payment systems and other provisions”. However, before the bill comes to force, the country's president needs to sign it.
The overarching aim of the new bill is to provide citizens with the option to use cryptocurrency to buy their everyday necessities if they wish to. Congressman Gabriel Silva tweeted that the new regulations will help the country to become “a hub of innovation and technology in Latin America”.
During an interview, Silva explained how more than half of Panamanians were suffering and unbanked, adding that this new law will help civilization greatly.
He continued: “Today I can go and pay for something to a merchant, and if the merchant wants to accept crypto, it's allowed, it's legal. Until today, that didn't exist in Panama, we are making it happen.”
With the new law, the payment of taxes, duties to the government and any additional fees will now be able to be paid in the form of popular cryptocurrencies bitcoin (BTC) ethereum, litecoin, XRP and stellar. A full list is subject to be announced at a later date.
Last September, El Salvador furthered its faith in BTC and made the coin its legal tender stating that all businesses have to accept BTC if it has the means to. Unlike this law, a business in Panama has to accept the request to accept BTC, the choice is theirs.
With blockchain technology in full swing in the crypto world, Panama's new law focuses on giving the government power to use it and aims to create more transparency with the “digitization of the identity of individuals and legal entities”.
Another popular business model is the use of Decentralized Autonomous Organizations (DAO). The new law will see DAOs as legal entities with the country soon able to issue Security Token Offerings (STOs), tokenized securities and commodities.