The Veto: What It Means for Panama
Panama’s President Laurentino Cortizo has decided to partially veto the much-discussed Bill No. 697—also known as the “crypto bill”—citing the need for more work to align it with the nation’s financial regulations. It seems the president is quite the perfectionist when it comes to potential crypto legislation!
A Veto That Echoes Concerns
Cortizo’s decision comes after he previously warned in May that he wouldn’t sign the bill without solid Anti-Money Laundering (AML) measures. Following its passage by Panama’s National Assembly back in April 2022, the president noted the importance of aligning these cryptocurrency laws with new regulations advised by the Financial Action Task Force (FATF). That’s bureaucratic talk for ensuring that any action—or lack thereof—doesn’t turn Panama into a haven for financial mischief.
The Balancing Act
While Cortizo acknowledged certain innovative aspects of the crypto bill, he remains concerned about the potential for illicit activities tied to digital currencies. It’s a classic case of “trust but verify,” reminiscent of your friend borrowing your favorite video game for the weekend—only to return it with a hefty scratch on the disc.
A Mixed Bag of Reactions
Congressman Gabriel Silva, a key player in introducing the bill, voiced his disappointment on social media, calling the veto “a lost opportunity” for job creation and attracting investment. He argues that the country needs to embrace technology for financial inclusion. Sounds like it’s time for a friendly debate over coffee—or perhaps a virtual currency discussion?
The Future of Crypto in Panama
If this bill gains approval, Panama could join El Salvador as the second Central American nation to regulate cryptocurrency spending. Unlike El Salvador, however, Panama’s bill won’t mandate local businesses to accept digital currencies. It offers more of a “we’re open to it!” stance rather than a full-on “you must do this or else.”
What the Bill Covers
The proposed legislation allows Panamanians to utilize cryptocurrencies such as Bitcoin and Ethereum as payment alternatives for various civil and commercial operations. Furthermore, the bill outlines regulations for digital value issuance, tokenization of assets, and even exploring how blockchain tech can help digitize identity. It’s a high-tech smorgasbord!
Conclusion: A Path Forward?
As Congress reviews the veto, the focus will be on making the necessary corrections to eventually pass the bill. Fingers crossed that the final draft aligns with both national and international standards while still encouraging technological innovation in Panama. Who doesn’t want to see a blend of opportunities and fiscal responsibility? It’s like having your cake and eating it too—just in the digital realm!
