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Panama and cryptocurrency: towards the adoption of bitcoin as legal tender

2022-05-19T10:39:52.265Z

After El Salvador and recently the Central African Republic, it is Panama's turn to reflect on the use of cryptocurrencies as an official means of payment. More than an idea, the bill is already well underway and is about to offer a new face to the country.



Panama, third country to adopt bitcoin?

Never has cryptocurrency been so present in the media, so much a source of discussion and reflection.

Witness the recent meeting of 32 central banks and 12 financial authorities from 44 countries to discuss bitcoin and its potential.

Because if El Salvador took twelve years to set up this cryptocurrency, the Central African Republic quickly followed the movement, before Panama did, perhaps, just as much.

Panama would then be the third country in the world to allow individuals and companies to use bitcoin for any purchase.

And it is clear that the project is on the right track.

Indeed, the National Assembly validated on April 28 this famous bill, consisting in framing the use of cryptocurrencies in the country.

The text includes the trading and use of cryptocurrencies,

Why is this good news for Panama?

If the country implements this legislation, all individuals could then pay for all their daily transactions with cryptocurrencies.

According to Panamanian deputy Gabriel Silva, the application of this law would tend to make the country “

a center of innovation and technology in Latin America

 ”.

For him, this project actually goes beyond purely financial borders to go "

beyond the sole regulation of tokens, and see bigger than the use of

Bitcoin

as legal tender, as El Salvador was able to do with its measure passed in september.

 ".

But then, if this project is finalized, how will it change the situation of the country?

It is above all a virtuous measure for unbanked citizens.

In a country where the internet is very well developed, only a quarter of the inhabitants have a bank account.

By developing the digitization of the state, Panamanians could then pay their taxes, duties or any other fiscal obligation.

The use of the blockchain would also promote better legal, regulatory and tax security, i.e. a real framework encouraging de facto banking interoperability.

The idea is to move towards greater financial inclusion with more modern and resolutely digital services.

More transparent, more innovative, the public service of Panama will have everything to gain by using blockchain technology.

The President of El Salvador lays the first brick of change

The validation of the bill generated a reactive effervescence around the subject.

In fact, 32 central banks and 12 financial authorities from 44 countries met on May 16 in El Salvador to discuss financial inclusion and the inherent benefits of using bitcoin.

Exchanges that aspire to be fruitful and rich;

digital economy, banking of unbanked people, deployment of bitcoin in El Salvador, its benefits in the country, etc.

If the President of El Salvador, Nayib Bukele, initiator of this three-day meeting, only leaks very little information on the content of the exchanges, it is clear that this international presence reflects a keen interest in cryptocurrency.

More than an interest, we can talk about involvement,

open-minded about these new means of payment which are about to revolutionize everyday transactions.

This event, held at Bitcoin Beach, a seaside resort in El Salvador, welcomes institutions from all over the world: Paraguay, Angola, Ghana, Uganda, Republic of Guinea, Madagascar, Haiti, Honduras and even the Maldives.

Today, the whole world engages in bitcoin, thinks about its new models.

Models that still aroused doubt, questioning and fear, but which now inspire confidence and positive perspectives for countries, whether developed or underdeveloped.

The results of this meeting will be made in a few days, enough to launch or not other equally exciting discussions on the future of cryptocurrency, and therefore of the countries which are closely interested in it.

At LiteBit, you receive €20 starting credit in your account to trade and buy your first cryptocurrency.

After registering and verifying your account.

For new customers only.

Until June 30, 2022

Source: lefigaro

All business articles on 2022-05-19

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