On the day El Salvador <a href="https://www.cryptoknowmics.com/news/honduras-opens-first-crypto-atm-ahead-of-el-salvadors-bitcoin-adoption/">officially adopted</a> Bitcoin as legal tender, another Central American country took its first steps to recognize cryptocurrencies as alternative payment methods. The Republic of Panama unveiled a draft bill yesterday that seeks to treat crypto payments at par with fiats in the country. 
<h2>Panama Introduces Bill to Recognize Bitcoin as Payment Method</h2>
In an <a href="https://twitter.com/gabrielsilva8_7/status/1435015640226615299" target="_blank" rel="nofollow noopener">announcement</a> on Twitter, Panamanian pro-crypto congressman Gabriel Silva talked about a new bill to make the country “compatible with the blockchain, crypto assets, and the internet.” He emphasized that it will create more jobs, attract new investments and make the government “more transparent.”

As per the document shared by Silva, the new crypto legislation aims to recognize digital assets such as Bitcoin and Ether as a payment method for “any civil or commercial operation not prohibited by the legal system” of the country. The document’s authors stressed the importance of fast and low-cost payments that allow people to settle transactions regardless of the distance between them or the volume of money being transferred.

Unlike El Salvador, which has made it<a href="https://www.cryptoknowmics.com/news/businesses-in-el-salvador-that-do-not-accept-bitcoin-may-face-penalties/"> mandatory</a> for local businesses to accept Bitcoin or face legal implications, Panama’s approach to crypto payments is quite modest. The country’s new bill only wants people to have a legal option of paying with crypto-assets but it’s not obligatory.

Silva highlighted that the draft legislation was prepared in consultation with Panamian citizens and a team of industry and technology experts. It also took policies recommended by the Financial Action Task Force (FATF) into account.
<h2>Crypto Adoption on the Rise in Latin America</h2>
El Salvador’s Bitcoin adoption has paved the way for other Latin American countries to consider cryptocurrencies seriously. Back in June, when the Salvadoran president first made his plan for cryptocurrencies public, many Latin lawmakers had come out in support of the move. 

At the time, Silva had pointed out that it is vital for his country to not be left out of the developments taking place in its neighborhood. 

Meanwhile, Paraguayan Congress also introduced a bill to regulate its domestic digital assets industry.

Panama Unveils Draft Bill to Regulate Bitcoin as Payment Method

The Republic of Panama unveiled a draft bill yesterday that seeks to treat Bitcoin payments at par with fiats in the country. 

Divya is a postgraduate from Jawaharlal Nehru University specializing in International Relations and a professional writer with more than 5 years of experience writing for the web. She is an avid reader interested in the global financial system and the effects of decentralization. At Cryptoknowmics, she hopes to deliver clear and understandable content to inform readers about the latest events in the crypto sector.

Panama Unveils Draft Bill to Regulate Bitcoin as Payment Method

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