As the global adoption of cryptocurrencies continues to soar, a new bill has been submitted in the Republic of Panama to recognize Bitcoin (BTC) and other digital currencies as alternative payment methods.

Panama Proposes Crypto Bill

Panamanian pro-crypto congressman Gabriel Silva noted on Twitter that the new bill would enable the freedom to use cryptocurrencies in the Central American country.

The bill, according to Silva, was prepared by different parties, including Panamanians, industry, and technology experts. He also stated that the legislation is in line with established policies set by the Financial Action Task Force (FATF).

According to the congressman, the new bill is established to make the country compatible with cryptocurrencies, blockchain technology, and the internet.

Furthermore, Silva believes something of such magnitude would contribute positively to the creation of thousands of jobs, attract foreign investments in Panama, and also foster transparency in government activities.

The draft legislation is tipped to foster innovation and expand the country’s financial services beyond its current state, with the document suggesting that Panama recognizes Bitcoin as an alternative global payment method that can be used for commercial and civil operations.

The bill wants cryptocurrencies to be recognized as an alternative payment method because the asset class is focused on providing efficient, fast, and low-cost settlements across borders.

Following El Salvador’s Bitcoin Adoption Move

The development comes as El Salvador became the first country in the world to accept Bitcoin as a legal tender.

While Panama’s cryptocurrency bill was prompted by El Salvador’s adoption of Bitcoin as a legal tender, the former’s initiative takes a different approach from what the El Salvadoran government offers.

Per multiple reports yesterday, El Salvador made it mandatory for businesses within its jurisdiction to accept Bitcoin and the United States Dollar (USD) as the two forms of payments.

However, Panama’s new bill only seeks the freedom to use Bitcoin and other cryptocurrencies like they would use the country’s official fiats.

Latin American Countries Seeking to Regulate Crypto

Over the years, cryptocurrencies have grown from an insignificant asset class to a force to reckon with, prompting regulators to consider regulating them.

The need to recognize cryptocurrencies became more pressing for Latin American countries after El Salvador took a major step in adopting Bitcoin as a legal tender.

Meanwhile, a cryptocurrency bill was presented to the National Congress of Paraguay in a bid to establish an attractive regulatory environment for crypto-assets and the industry at large.