Bill Proposes Voluntary Crypto Acceptance in Panama

Panama has introduced a bill to regulate the voluntary use of crypto for payments, aiming to position itself as a hub for innovation and technology in Latin America.

The legislation, spearheaded by Congressman Silva, allows private and public use of digital assets without mandating acceptance, unlike El Salvador's approach.

Citizens and businesses can choose whether to use crypto like Bitcoin and Ethereum for civil, commercial, and tax payments.

No capital gains tax will be imposed on Bitcoin investments due to Panama's territorial tax system.

The bill promotes distributed ledger technology for transparency in government operations and digitization of public records.

It covers tokenization of assets like precious metals, new payment systems etc.

Over 50% of Panamanians lack bank accounts; the bill aims to facilitate digital economy participation through crypto wallets.

The legislation seeks to attract foreign investments, create jobs, and foster entrepreneurship while adhering to anti-money laundering (AML) regulations. However, it still requires approval from President Laurentino Cortizo before becoming law.

This proposed legislation could influence its economy through financial inclusion, foreign investment, and regulatory positioning. By enabling crypto wallets for payments and tax compliance, the legislation may reduce reliance on informal systems and increase participation in the formal economy.

It could attract tech startups and foreign capital. Panama’s territorial tax system, which exempts Bitcoin investments from capital gains tax, may incentivize crypto-related businesses to relocate.

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