Panama Makes Cryptocurrency Operations Absolutely Legal

Panama is preparing to make cryptocurrency transactions legal without making bitcoin an official currency.

If we want cryptocurrencies to be fully democratized, they must be fully accepted by various governments. It doesn’t have to go that far to make a given cryptocurrency an official currency, but getting at least legal recognition is an important step, if not a decisive one. The step taken today by Panama.

Panama intends to legalize cryptocurrency transactions

Central America seems to be very fertile ground for cryptocurrencies. Panama has just approved a bill to legalize cryptocurrency transactions. Therefore, it is certainly good that it allows moving towards the adoption of cryptography in the country. That being said, Panama has no plans to follow in the footsteps of El Salvador or the Central African Republic by making bitcoin the official currency.

without making bitcoin the official currency

This new law will only mean that the citizens of the country will be able to pay taxes with digital assets. Moreover, Panama, already perceived as a hub for offshore financial services, could attract even more crypto companies. For example, Panama will not charge capital gains in bitcoin, which is often considered negative for investors around the world.

Panama’s President Laurentino Cortiso has yet to sign the bill to become law in its own right, but it has won a large majority in Parliament. In any case, this should give the country a new dynamic, and who knows what could have a significant impact on the local economy. There is no doubt that if this law were signed, the first results should be visible very soon.