Bitcoin could become legal tender in Panama

Panamanian parliamentarian Gabriel Silva has introduced a bill that aims to make cryptocurrencies the legal tender in the country. The initiative follows the introduction of a similar law in El Salvador.



The document was named “Law on Cryptocurrencies: Ensuring Compatibility of Panama with the Digital Economy, Blockchain, Cryptoassets and the Internet”, Mr. Silva spoke about it in Twitter the day before. The bill aims at “legal, regulatory and financial confidence in the use, storage and placement of digital assets and cryptoassets in the Republic of Panama.” The parliamentarian is convinced that such a measure will create new jobs, attract investment and contribute to greater transparency in government departments.

The bill talks about encouraging the use of cryptocurrencies and other digital assets by the state – similar to how it is implemented in El Salvador. In addition, the need for the government to use blockchain technologies to identify and ensure transparency of activities is emphasized. It is worth noting that within the framework of the World Economic Forum, the potential of blockchain technology to combat corruption was explored. However, the deployment of such decisions at the state level would be an unprecedented step and would be marked by a wide range of consequences.

The introduction of bitcoin in El Salvador was fraught with difficulties. This initiative did not find many supporters among the population – citizens expressed confidence that not the people as a whole would benefit from this, but only a limited group of people. It was with the Salvadoran initiative that experts linked the subsequent collapse of the bitcoin rate. Nevertheless, the adoption of such a law in Panama will create another important precedent for other countries and will help them determine the adoption of appropriate decisions.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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