El Salvador was the first country to make Bitcoin a legal tender in the nation. While no other country followed in their footsteps in 2021, 2022 has been different so far. Recently, the Central African Republic made Bitcoin a legal tender in the nation. And now, reports suggest that Panama is set to announce Bitcoin as legal tender as it approves its first bill regulating cryptocurrencies.
The crypto bill in Panama
Gabriel Silva, Panama Congressman, recently introduced a bill that legalizes the use of crypto for making payments. The bill looks at two aspects, the first being the legal stabilization of crypto in the country. Secondly, the development of the industry and increasing the employment in the country. The bill was approved and allowed the use of crypto for personal and business transactions in Panama.
This bill will also highlight the capital gain tax, which is an essential aspect of crypto. Since it is still more of an investment vehicle, it’s a source of revenue the government surely wouldn’t wanna miss. Felipe Echandi, another congressman, believes that Panama could become a digital identity provider globally. First, they plan to digitize the identity of citizens in Panama with blockchain tech. They also plan to integrate DAOs and Smart Contracts with Panama.
Legal tender soon
The bill has been submitted to the president of Panama for approval. It has been approved by the Panamanian national assembly, so that’s a start. It was also passed by the Economic Affairs Committee of Panama. If President Laurentino Cortiso approves the bill, Panama will become the 3rd country to announce Bitcoin as legal tender.
Why are we seeing only 3rd world countries adopt Bitcoin?
For people living in a developed country like the US or developing nations like India, the economy is fairly stable. We do not experience an overnight drop of 10-20% (or more) value of our currencies, and the prices of goods, even though rising, are not beyond our means. But for most 3rd world nations, the economies are in a terrible state, and the inflation is skyrocketing. So, to save the economy, they need a currency that’s not controlled by anyone and is more stable than their fiat.
What are your thoughts as Panama is all set to announce Bitcoin as legal tender? And do you think their president will approve the bill? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Germany gets crypto-friendly tax rules for staking and lending.
