Panama Slows Its Crypto Adoption Efforts

Last month, it looked as if Panama would be the following Latin American country to adopt Bitcoin, as the country announced the approval of a bill regulating crypto.

All the bill needed was to be signed by the country's president before it became official, crypto devotees were hopeful the bill would pass. But it seems now that the country may be looking to backpedal.

In an interview with Bloomberg, President Laurentino Cortizo said he might veto the bill because he wants to make sure it aligns with global anti-money laundering standards.

“I have to be very careful if the law has clauses related to money laundering activities,” he said in a live interview.

The “Crypto Law” states that cryptocurrencies will become a valid form of payment "for any legal civil or commercial operation," most importantly to pay taxes and fees owed to the government. While no official list of accepted cryptos has been named, Bitcoin, Ethereum, XRP, Litecoin, and Stellar were highlighted in the bill.

Congressman Gabriel Silva hoped this bill would help the Central American country to “become a hub of innovation and technology in Latin America.” He also touted the Crypto Law's ability to help unbanked Panamanians, which is over 50% of its population.

President Cortizo said that he thought the law was “innovative,” but could not comment further due to his lawyers reviewing the bill, and looking to give him recommendations on what to do next.

This law would differ from the first Bitcoin adopting country El Salvador, which made Bitcoin legal tender last year, a business must accept Bitcoin if they have the technology to do so, the law states. In Panama, it is much leaner, only making a business accept it if they want to.

As the cryptocurrency market takes a small hiatus from being the big topic floating around the public conscious, it is understandable why the country has seemed to change its tune. With the sudden slashing in the price of Bitcoin, El Salvador has become a poorer country, a chance Panamanians may not be willing to take.