A congressman in Panama has introduced a new draft bill that would recognize Bitcoin (BTC) and other cryptocurrencies as alternative payment methods in the country.
The development was posted on Twitter by the country’s pro-crypto congressman Gabriel Silva, who noted that the move is being made to ensure the freedom to use cryptocurrencies for settlements without any form of prohibition from existing laws.
According to Silva, the draft document was prepared involving multiple parties, including selected Panamanian, technological and cryptocurrency industry experts.
The involved parties have tailored the bill to be in line with existing policies established by the Financial Action Task Force (FATF), the congressman noted.
Regulating the Panama Crypto Industry
The authors believe people should freely use cryptocurrencies as alternative payment methods because of the benefits associated with their usage, which include fast, efficient, and low-cost transactions across various borders.
Aside from Bitcoin being considered as an alternative payment method, Silva noted that the bill, if passed, could establish an enabling environment in the country, including the creation of thousands of jobs, attraction of foreign investments, as well as make its governance more transparent.
Furthermore, the cryptocurrency bill will contribute in making Panama “a country compatible with the blockchain, crypto assets and the internet,” Silva said.
Panama’s proposed cryptocurrency bill was triggered by El Salvador’s acceptance of Bitcoin as a legal tender. Recall that El Salvador became the first to officially declare Bitcoin a legal tender.
Since El Salvador adopted Bitcoin as a legal tender, other countries have made significant efforts in trying to regulate the crypto space within their jurisdiction.
Silva noted in the announcement that “Panama should not be left behind,” as the country has taken important steps toward regulating cryptocurrencies.
Panama Bill Advocates for Crypto Usage Freedom
Although Panama seems motivated by El Salvador’s accepting Bitcoin as a legal tender, the former plans on regulating cryptocurrencies using a different.
While El Salvador requires businesses in the country to use Bitcoin and the United States Dollar (USD) as payment, Panama only seeks to ensure that people should be allowed to freely use the assets.
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