Panama follows El Salvador as it considers adopting Bitcoin and other cryptocurrencies like the XDC network as legal tender

The adoption of cryptocurrencies around the world is growing rapidly. Panama follows in the footsteps of other Central American countries such as El Salvador, Lugano and Honduras Prospera.

Bitcoin (BTC) and other cryptocurrencies, including the XDC network, will soon be accepted in Panama after the National Assembly takes the first steps. In the first debate, legislation was approved that tries to control the use of cryptoactives in the region. It is crucial for Panama because it aims to provide legal stability to crypto assets, says Gabriel Silva, a congressman and one of the law’s advocates.

The second goal of the law, he said, is to grow the crypto industry and attract investment that creates jobs. Thus, the plan contemplates the acceptance of bitcoin and other digital currencies as means of payment throughout the Panamanian geography. ETH, XRP, Litecoin (LTC), XDC Network (XDC), Elrond (EGLD), Stellar (XLM), IOTA, and Algorand are some of the cryptocurrencies specifically named.

XDC Network is a decentralized and hybrid blockchain platform powered by interoperable smart contracts, developed by XinFin that uses a combination of private and public blockchains. In addition, XinFin’s Delegated Proof-of-Stake (XDPoS) consensus further improves efficiency and reduces the need for complex blockchain infrastructures. Hundreds of DAPPs have already started building around the XDC network. Near-zero gas charges, EVM support, smart contract support, and faster transaction time have started to attract a large number of developers to build applications on the XDC network.

On the other hand, the plan does not require the adoption of cryptocurrencies as a payment mechanism. According to Silva, he is a volunteer. To a tweet from one of his followers, he replied: “If the company wants to receive it, no problem.” Furthermore, although the National Bank of Panama would be designated as the regulator, other laws would prescribe the rules to implement these payment systems.

Taxes may also apply to future cryptocurrency holdings. According to the congressman, “more transparency and more efficiency in public procedures” can only be achieved by incorporating blockchain technology into government functions. An identity scanning procedure would be included and precious metals and other items would be symbolized.

According to Silva, the measure adopted “is not perfect; it has undergone some modifications”, admitted Silva. Therefore, they requested public comments to improve the quality of the second round of project deliberations.

According to Silva, the new proposal was modified during the discussion in part due to the unification of two laws that had been previously presented, as reported by CriptoNoticias in February of last year. Combining these two ideas, a new document was designed. On Twitter, the National Assembly announced that the merger was complete.

The proposal will have to go through further discussion and approval procedures after this initial discussion before receiving final approval. So far, no dates have been given for these next steps.

Image: Pixabay

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