The Panamanian parliamentarian is preparing a bill aimed at legitimizing cryptocurrencies as a means of payment and providing tax incentives to cryptocurrency firms.
After El Salvador’s President Nayib Bukele proposed legalizing bitcoin in the country, Panamanian MP Gabriel Silva responded to the initiative. He stated that if Panama is to become a true hub for technology and entrepreneurship, it must follow the lead of El Salvador and support the adoption of cryptocurrencies.
Silva considered Bukele’s proposal “positive, ambitious and interesting,” adding that Panama could also legitimize cryptocurrencies by adapting them to its realities. Thus, El Salvador and Panama could arrange a “technological competition,” Silva said.
This month, the congressman and his team will begin interacting with lawyers, government officials, and cryptocurrency companies and traders on this issue. Silva did not disclose details of the bill, as its content will depend on negotiations with interested parties.
Under the current Constitution of Panama, the government cannot establish certain currencies as legal tender, which could make it easier for Bitcoin to be adopted as a currency. The country officially adopted the US dollar in 1904 following a currency agreement with the United States. The local currency, the Panamanian balboa, is used in the country along with the dollar.
Panama is considered a tax haven for many international companies. Silva said Panama has the capacity to attract cryptocurrency firms and is ready to provide them with the necessary work permits and tax breaks. Silva said his independent opposition party Bancada Independiente is working constructively with the ruling party, and has previously managed to reach agreement with it on various initiatives.
Silva will discuss the Panama cryptocurrency legalization bill with various ministries, including the Ministry of Economy and Finance. The congressman does not expect that the proposal will be approved in three days, as happened in El Salvador, but he is positive, as he feels the support of citizens. For the bill to be approved, it must receive at least 36 out of 71 votes of deputies.
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