Legislators in Panama are passing a new bill that regulates the use of leading digital asset Bitcoin (BTC) and eight other crypto assets.
According to Panamanian Congressman Gabriel Silva, the Central American nation has passed legislation that permits unlimited use of nine cryptocurrencies as a means of payment for individuals, banks, and other businesses.
“Crypto Law approved in third debate. This will help Panama become a hub of innovation and technology in Latin America!
Only thing missing is for President [Laurentino] Cotizo to sign it… This will help create jobs and financial inclusion.”
The digital assets include not only the top crypto asset by market cap Bitcoin, but also leading altcoin Ethereum (ETH), Bitcoin alternative Litecoin (LTC), interoperability blockchain XDC Network (XDC), data feed monetization network Iota (IOTA), smart contract platforms Elrond (EGLD) and Algorand (ALGO) and payments networks XRP and Stellar (XLM), according to the bill.
The new law will also set rules for crypto trading, the issuance of digital securities, and the tokenization of physical assets such as precious metals, according to Reuters.
Furthermore, the law gives legal clarity toward the optional use of cryptocurrencies, creates licenses for crypto investment businesses and ensures that the government will use blockchain technology to become more efficient and transparent, according to Silva.
Though Panama’s move has drawn comparisons to fellow Central American nation El Salvador making BTC and other digital assets compulsory legal tender last year, the acceptance of crypto assets in Panama is currently optional.
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Featured Image: Shutterstock/Digital Store/Fotomay