The Republic of Panama has introduced legislation to regulate cryptocurrency.

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A new bill in Panama intends to acknowledge Bitcoin as an alternative payment method and to allow people to use cryptocurrency freely.

In the midst of Bitcoin (BTC) becoming legal cash in El Salvador, another Central American country is making strides towards allowing the usage of cryptocurrencies such as BTC and Ether (ETH).

The Republic of Panama introduced a measure to regulate cryptocurrencies on Monday, with the goal of making the country “compliant with the blockchain, crypto assets, and the internet.”

Announcing the news on Twitter, Panamanian pro-crypto congressman Gabriel Silva stressed that the new legal initiative has the potential to generate thousands of jobs, create new investment sources, as well as make the government “more transparent.”

According to the draft bill document shared by Silva, the new legislation intends to recognize crypto assets like Bitcoin as an alternative global payment method for “any civil or commercial operation not prohibited by the legal system of the Republic of Panama.” The bill authors emphasized that cryptocurrencies enable fast and low-cost payments allowing them to finalize a financial transaction “regardless of the distance between parties and the transaction volume.”

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In contrast to the government of El Salvador, which has required local businesses to accept Bitcoin in exchange for goods or services alongside the United States dollar, Panama’s new crypto bill does not intend to force obligatory Bitcoin acceptance. Instead, the legislation calls to establish freedom to use cryptocurrencies like Bitcoin and Ether in Panama, local TV network Telemetro reported.

Silva stated that the new draught bill was created in conjunction with Panamanian citizens as well as a diversified team of industry and technological professionals. He stated that the legislation was drafted with essential criteria supplied by international organisations such as the Financial Action Task Force in mind.

Following El Salvador’s decision to embrace Bitcoin as an official currency, more Central American countries have entered the crypto business. In late August, a company in Honduras allegedly installed the country’s first Bitcoin ATM, allowing users to purchase BTC and ETH with the local fiat currency, lempira.

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