After El Salvador’s move to give Bitcoin a legal tender, the National Assembly of the Central American country, Panama, passed a bill on Thursday to enact regulations for the commercialization and use of cryptocurrency in the republic.
If the President of the National Assembly, Laurentino Cortizo, approves the bill, private and public companies would be allowed to use the digital assets alongside officials making way for them to pay taxes in cryptos. At the same time, experts warn the legislative branch that adding digital assets could disrupt the country’s reputation for lacking financial transparency.
As the proposed bill has a broader scope, it covers trading, the use of cryptocurrencies alongside its addition to the payment system, and the issuance of digital securities. Besides, it also includes tokenization of the precious metals, which refers to converting a physical asset into a digital format.
In line with the new law, the people of Panama will use cryptocurrencies as a payment medium to conduct commercial or civil operations under the regulation rules applied.