Congressman Gabriel Silva introduced a proposal for a Crypto Law. Despite the fact that Silva’s profile photo features laser eyes, the congressman makes no reference to Bitcoin in the video announcing his achievement.
“The bill is quite simple. Firstly, it seeks to give certainty and legal security to crypto assets, such as cryptocurrencies, in Panama. The second thing the project seeks is to attract companies, attract investment, and help foster entrepreneurship in Panama that focuses on the digital economy. This is positive because it helps to promote and create jobs. And the third thing it seeks is to expand the number of financial services offered in Panama, in order to ensure better prices for everyone”
Gabriel Silva
The application of the specialist language is, at best, dubious. Furthermore, the Crypto Law project has no intention of making anything legal tender, nor is it a Bitcoin-only bill. While Congressman Gabriel Silva did not use the term “Bitcoin” in the video, the term appears eleven times in the document titled “Crypto Law: What Makes Panana Compliant With The Digital Economy, The Blockchain, Cryptoactives, And The Internet.” Ethereum is mentioned only four times throughout the text.
Nonetheless, Ethereum’s presence is felt in the Crypto Law: “Cryptoassets such as Bitcoin can be used as a long-term investment vehicle and a hedge against inflation. Additionally, cryptocurrency assets are divisible into a much greater number of units than traditional assets. Bitcoin, for example, can be subdivided into 100 million Satoshis. Ethereum and Cardano both possess similar divisibility properties.”
However, let us get straight to the point. The Crypto Law proposal states in Article 8: “Natural persons residing in the Republic of Panama, as well as legal entities organized in the Republic of Panama, may freely agree on the use of crypto assets, including but not limited to Bitcoin and Ethereum, as a means of payment for any civil or commercial transaction not prohibited by the Republic of Panama’s legal system.”
And if you’re worried about taxes, keep worrying. The numbers are unappealing: “The taxpayer will be subject to capital gains treatment and, as a result, will pay income tax on profits earned at a fixed rate of 10%. (10 percent ). This situation will be regulated by the Executive Branch.”
This Has Happened Previously
Criptonoticias recorded in October 2020: “The Panamanian National Assembly will debate a draft measure regulating the usage and sale of cryptocurrencies in the country, the legislative body announced through Twitter. The legal instrument, which will take effect on October 22, 2020, was introduced last Thursday and aims to control “the usage of virtual currencies or cryptocurrencies and the methods of transaction with them” in Panama.
At the time, the efforts were insignificant. However, the purpose was there and the seed was sown for a Crypto Law. And with El Salvador’s Bitcoin Law set to take effect in a few hours, the time has come for neighboring countries to go big or go home. Which one, Panama?
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