El Salvador has surprised everyone and has set a precedent in terms of cryptocurrencies by legalizing Bitcoin as legal tender. This means that Salvadoran citizens will be able to use Bitcoin to buy anything as if it were a colón, the other national currency.
Paraguay and Panama will propose laws similar to the one enacted by El Salvador to convert Bitcoin or other cryptos into legal tender currencies
This move towards positive legal regularization of crypto has inspired other countries that could follow in the footsteps of the small Central American nation. These are the countries that are closest to legalizing the use of Bitcoin as legal tender.
-Panama. One of the countries that has been most focused on the Salvadoran movement has been Panama. In this way, the Panamanian deputy Gabriel Silva, has assured in his Twitter account that he will propose a law similar to that of El Salvador to introduce cryptocurrencies into the economy of Panama.
This is important. And Panama cannot be left behind. If we want to be a true technology and entrepreneurship hub, we have to support cryptocurrencies
We will be preparing a proposal to present at the Assembly. If you are interested in building it, you can contact me https://t.co/yiAzPpD9nj
– Gabriel Silva (@ gabrielsilva8_7) June 7, 2021
The objective is clear, as Silva himself says on Twitter, to turn Panama into a technological and digital innovation center. And this is a formula that seems to work perfectly in small countries, such as Singapore (the birthplace of exchanges like Bybit).
-Paraguay. In the same way as in Panama, Congressman Carlos Rejala, and Paraguay also advocates for benign legislation with Bitcoin and other cryptos, claiming that, if investment from a sector that moves billions of dollars can be attracted, the GDP of Paraguay can increase enormously.
These are just the first pieces of the domino effect caused by El Salvador earlier this week, so hopefully similar initiatives spring up around the globe. Of course, it is not the first time that national initiatives related to cryptocurrencies have been promoted, as it already happened in India only a few months ago.
Venezuela tried it with its own crypto, the failed Petro, which, although it came to nothing, showed the Latin American willingness to adapt to the cryptocurrency market, something that they have also demonstrated by creating their own crypto.
Also, in 2019, the possibility of adopting Bitcoin in the same way as El Salvador was proposed to Argentina (by the financial magnate Tim Draper) as a way to mitigate the international mistrust caused (and causes) by the Argentine peso as a currency. . The proposal was rejected, but it is very possible that now it will land again in the offices.