Panama will recognize bitcoin as a form of payment

Panama has introduced a new measure that seeks to recognize bitcoin as a form of payment. Additionally, the bill will allow residents to use cryptocurrency.

A Central American country is taking the same road, following El Salvador‘s adoption of Bitcoin as legal cash. The goal is to empower inhabitants of the country to begin using cryptocurrencies such as Ether (ETH) and Bitcoin (BTC).

The Republic of Panama passed a measure regulating cryptocurrency on September 6th. The bill attempts to make Panama more receptive to the Internet, blockchain technology, and digital assets.

Gabriel Silva made a public announcement. TwitterBill has the potential to generate several job possibilities. He stated that the legal effort might generate new sources of investment and increase the transparency of the Panamanian government.

Bitcoin is decentralized digital money with no central bank or administrator. It is presented in the form of BTC and is sent directly between users via the peer-to-peer bitcoin network. By comparison, Ethereum is a decentralized, open-source blockchain that also supports smart contracts. Additionally, it has its own native coin, Ether, which is pegged to the ETH.

Silva’s draft bill

According to a draft bill paper, the new law’s purpose is to recognize cryptocurrencies like Bitcoin as a payment option. Silva distributed the document, and the cryptocurrency will be used as an alternate payment mechanism on a global scale. This would apply to all commercial or civil activities that are not prohibited under the legal system of the Republic of Panama.

Silva stated that he drafted the revised draft bill in consultation with Panamanian citizens and a multidisciplinary team. Additionally, he consulted with technical and industry specialists. Additionally, the designers of the law took into account significant instructions issued by international organizations such as the Task Force on Financial Action and Financial Action Task Force.

He stressed that cryptos enable low-cost and rapid payment processing, enabling them to handle all financial operations. This is true regardless of the volume of the transaction or the distance between the parties.

Bitcoin Adoption in El Salvador and Panama’s Crypto Bill

El Salvador’s government requires local companies to accept bitcoin in payment for goods and services. However, Panama’s new law does not require the acceptance of bitcoin; rather, it establishes the country’s freedom of cryptocurrency use. According to Telemetro, the local television network.

El Salvador’s adoption of bitcoin as legal cash marks the entry of another Central American country into the crypto business. In late August, a Honduran firm built the country’s first bitcoin ATM. These BTC ATMs enable customers to purchase Ethereum and Bitcoin using Lempira, the country’s fiat currency.

Also Read: El Salvador Buys The Dip As Bitcoin’s Prices Fluctuate