Panama Looks to Legalize Bitcoin and Ethereum in Line with El Salvador

Another country in Central America, Panama, is joining the ranks to legalise blockchain technology and cryptocurrencies and its flagship asset- Bitcoin (BTC). According to the update from Panamanian Congressman Gabriel Silva, a crypto law has been presented to the national assembly to position the country at the forefront of technology innovation.

Going on to explain why the move to legalise cryptocurrencies is a good option for Panama, the 32-year-old congressman listed the enhancement of job creation, the support for innovation, government transparency, the emergence of new businesses or ventures, decentralisation, and the expansion of what the country’s financial services industry currently offers.

“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 lawmaker said based on the translation of his tweet.

“Panama should not be left behind. Let's go from the profitable world to the futuristic pro Mundi. To a more inclusive economy. A country at the forefront of innovation and technology.”

The attempt by Panama will follow a similar trend by El Salvador, which battled months of negotiations amongst lawmakers and the international financial bodies, including the World Bank and the International Monetary Fund (IMF). While El Salvador has enacted the Bitcoin-as-a-Legal tender law today, the journey was not as smooth for the country.

The journey to possibly legalise Bitcoin will see Panama battle resistance from the World Bank in the technical implementation of its proposed dive into the digital currency world, just as the monetary watchdog denied El Salvador. Monetary ties may also be cut off by these financial organisations, emphasising the energy requirement that Bitcoin or most blockchain protocols demand. 

While the proposed Panama crypto law has no defined timeline, the lawmaker noted that inputs are welcome to improve the proposal's provisions.