Panama introduces bill to regulate cryptocurrencies

Panamanian congressman Gabriel Silva drafted a bill to regulate the use of digital assets as a means of payment.

Today we present the Crypto Law. We seek to make Panama a country compatible with blockchain, crypto assets and the Internet.

This has the potential to create thousands of jobs, attract investment and increase government transparency

You can view the project here: https://t.co/6FoKdwbkwR pic.twitter.com/xDxfyS9BYI

— Gabriel Silva (@gabrielsilva8_7) September 6, 2021

“Today we present Crypto Law. We strive to make Panama a country compatible with blockchain, crypto assets and the Internet,” wrote Silva.

According to him, adoption of the initiative will create “thousands of jobs”, attract investments and “make the government transparent”.

The document provides for the use of cryptocurrencies between individuals and in commercial operations. It is envisaged that residents will be able to pay taxes and fees with digital assets.

Silva told CoinDesk in an interview that cryptocurrencies are not banned in Panama. The republic’s national currency is the Panamanian balboa, which has been firmly linked to the US dollar since 1934. The latter is legal tender in the country.

The bill also imposes a capital gains tax on cryptocurrencies, added co-author Felipe Echandi. According to him, the aim of the initiative is to create conditions for the widespread use of digital assets.

Another aspect is the “expansion of digitalisation of the state” through the use of blockchain technology by digitising the identities of individuals and corporate entities. The authors believe that, thanks to this, Panama will “be compatible” with smart contracts and DAO.

“The country has all the means to become a provider of digital identification for the rest of the world, as Estonia did with its Digital Residency program”, Echandi explained.

Earlier, Argentine President Alberto Fernández allowed the legalization of the first cryptocurrency and the possibility of issuing CBDC. In his view, digital gold will help tackle inflation.

As noted, El Salvador became the first country, recognizing Bitcoin as legal tender. The government has already purchased 400 BTC for a $150 million fund.

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