Central America’s bitcoin usage is rising, with Panama being the latest nation to flock toward cryptos.
The development has unfolded on the exact same day that El Salvador is now officially accepting bitcoin as their legal tender. Now Panama is going in this same direction and is planning a roll-out by embracing Ethereum and other cryptos as well.
Panama has announced a cryptocurrency law currently in draft form, as reported by Congressman Gabriel Silvaon via Twitter. Much like El Salvador, Panama wants bitcoin and Ethereum to be more popular as a form of payment. Panama’s lawmakers also wish to support blockchain inside the public sector and use the technology within its banking sector.
The bill goes into how Panama is compatible with the crypto economy, including blockchain assets and the internet. The bill says,
“Today we give the Crypto Law. We seek to form Panama into a country that is compatible with the blockchain and crypto assets. This has the possibility to create many jobs, attract more investment and make our government transparent.”
Prices Under Pressure
Despite the larger-scale adoption of bitcoin and the number two cryptocurrency, Ethereum, most of the overall cryptocurrency market is selling in the red as of today. The bitcoin price is holding at $50,000, while Ethereum will be gearing up for a run to $4,000.
The draft law touts bitcoin as the hedge against inflation and stresses its divisible nature, saying that Bitcoin can be “divided into 100 million Satoshis” as one example of this. It also accepts other cryptos including Cardano and Ethereum for being more divisible than traditional and normal currencies and investments.
On social media, users were fast to highlight the fees linked to Ethereum transactions especially. The average Ethereum fee around just lower than $40, compared to over $50 in early Sept.
Panama is keeping things open and not requiring its merchants to use bitcoin or other cryptocurrency. That was a crucial criticism of the El Salvador’s bitcoin roll-out, in that consumers and businesses alike felt like they were being forced to quickly use bitcoin as their currency.
Author: Blake Ambrose