Following the news that El Salvador’s government is in the process of making Bitcoin legal tender, Panamanian congressman, Gabriel Silva, tweeted stating that Panama may be the next in line to adopt Bitcoin.
“This is important. And Panama cannot be left behind. If we want to be a true technology and entrepreneurship hub, we have to support cryptocurrencies. We will be preparing a proposal to present at the Assembly. If you are interested in building it, you can contact me.”
Silva highlighted the importance of welcoming “true technology”to enable the nation to become an “entrepreneurship hub”, ending his tweet with an open call for his fellow citizens to get involved with the proposal.
A number of Latin American countries have released statements on the back of the El Salvador Crypto Bill, which was signed into law on Wednesday. Paraguay has also stated that it is considering making Bitcoin legal tender.
El Salvador’s President, Nayib Bukele, announced El Salvador would be making Bitcoin legal tender at the recent Bitcoin 2021 conference in Miami. Nayib Bukele’s announcement means that El Salvador is now the first country to make this step towards legalizing Bitcoin and making it legal tender.
Jack Mallers, the creator of the Zap and the Strike Bitcoin payments app assisted in the creation of the bill to make Bitcoin legal tender in El Salvador:
“As of now, El Salvador is set to be the first bitcoin country and the first country to make bitcoin legal tender and treat it as a world currency and have bitcoin on their reserves,”
What this mean for El Salvador, and other countries who are considering making a similar move, is that residents will be able to make payments in Bitcoin and hold on to it as a store of wealth. As Bitcoin is legal tender in El Salvador, people will no longer have to worry about taxation of capital gains when they convert or hold onto the cryptocurrency.
Following another slump in the cryptocurrency market this week, news that El Salvador and a number of other Latin American nations are moving towards a crypto-friendly state is a breath of fresh air for the crypto community.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.