- Panamanian Congressman introduced a bill to regulate the use of crypto.
- Congressman Silva proposes crypto to be used for civil and commercial transactions.
- He noted that the ruling and opposition benches are both willing to consider the bill.
On September 6, Panamanian Congressman — Gabriel Silva, introduced a bill to regulate the use of crypto in the country. In the proposal, Gabriel Silva proposes that crypto be used for civil and commercial transactions.
It can be recalled that El Salvador, another Latin American country, is making Bitcoin a legal tender. More Latin American countries seem to follow El Salvador’s lead as Paraguay also considers adopting crypto in its nation.
Hoy presentamos la Ley de Cripto. Buscamos hacer a Panamá un país compatible con el blockchain, los criptoactivos y el internet.
Esto tiene el potencial de crear miles de empleos, atraer inversión y transparentar el gobierno
— Gabriel Silva (@gabrielsilva8_7) September 6, 2021
According to the congressman, the bill seeks to make Panama a country compatible with the digital economy, blockchain, crypto assets and the internet.
Furthermore, the document explains that Panamanian or entities established in the country can freely agree to use cryptocurrency for commercial or civil transactions not prohibited by law. Also, the project proposes that taxes, fees, and other tax obligations may be paid using crypto.
As part of the proposed legislation, principles of banking interoperability will be established so that traditional financial systems can communicate with new ones. This would involve the possibility of connecting a bank account with an exchange, according to Silva. He added,
Today you can’t even connect a bank account with PayPal.
Meanwhile, Felipe Echandi, a crypto businessman who worked with Silva in the drafting of the bill, also shared some comments. Echandi says the bill will ensure crypto isn’t just used by two parties that have a contract, but the conditions will be created so that it can be utilized by a wide audience, say in a local store.
Besides regulating crypto, the project also aims to digitize the identities of individuals and legal entities using distributed ledger technology, according to the draft bill. The digitization process allows Panama to be compatible with smart contracts and DAOs, the bill reads.
The country has all the potential to be a digital identity provider for the rest of the world as Estonia has done with its digital residency program
On another note, Silva — a member of Bancada Independiente, an independent and opposition party — noted that the ruling and opposition benches are both willing to consider the bill.
Over the past months, the Congressman met with different public institutions that would be involved in the operation of crypto such as the Ministry of Finance, and the National Bank and the Superintendency of Banks.