Some brave people in Panama are pushing to advance a cryptocurrency bill as they work to overcome the fear and uncertainty of the majority in Congress and the general population.
On June 8, 2021, Satoshi Nakamoto smiled as wide as the horizon that can be seen from the west beach of the Zonte. After all, perhaps not even Satoshi could have predicted that a sovereign nation would adopt bitcoin as a legal tender just 12 years after its invention. Ever since El Salvador passed his Bitcoin law, the entire cryptocurrency community has been anxious to know which country will continue to be the second to approve a bitcoin bill, favoring the presence of the alpha currency on the world stage. Because one of the eight countries that has a politician has laser eyes after El Salvador passed its Bitcoin Law, Panama could be that country. Although Panama’s population of 4.3 million is less than 6.5 million in El Salvador, the overall impact of a second country with bitcoin-centered legislation would be incalculable.
Gabriel Silva, an independent member of Congress, was the Panama politician who reached the headlines saying he would introduce a bitcoin bill shortly after El Salvador introduced them. In mid-June, Silva created a Telegram group open to the public to allow Panamanians to help shape the bill to their liking. This group quickly split into two fields: “bitcoin only” and “alt-coin inclusive”. After thousands of messages coming and going, we still haven’t seen a bill tabled by Silva, though he says it will be published this month. I interviewed a Panamanian from each camp to illuminate the situation as they see it from the ground.
“Never doubt that a small group of committed and committed citizens can change the world: in fact, it’s the only one they’ve ever had.” – Margaret Mead
Let me introduce two of Panama’s most thoughtful and committed citizens, both working to advance bitcoin bills to move their country to the forefront of bitcoin-centric nations.
Of the 4.3 million people in Panama, you won’t find a bitcoin bitimalist better than @AbelitoPanama (AP). He has worked tirelessly to educate the people of Panama about the need to center a law around bitcoin for the good of the country.
How many years does it take to write a bill that changes the world? Joseph Isaza (JI) is 23 years old and may have done so with an invoice that is currently being reviewed in Panama. If approved, it would convert bitcoin, among three other cryptocurrencies, into legal tender currency in Panama.
I interviewed Joseph and Abelito to find out what’s new about Panama’s prospects of being the next country with a bitcoin law.
Interview with @AbelitoPanama:
How close do you think we are to see a cryptocurrency bill approved in Panama?
AP: “Silva is an independent MP, so he will have an uphill battle because he is not part of a leading party. There are four major political parties.
“His bill should go through the economy committee which is made up of seven congressmen. If approved, he will go to the 72-member Congress, which will have three different debate sessions, which can take weeks to months.”
“Panama, unlike El Salvador, does not depend on remittances of its GDP, so it diminishes the motivation to approve a bill quickly.”
Author’s note: 0.9% of Panama’s gross domestic product GDP comes from remittances, while remittances represent 24.1% of El Salvador’s GDP.
What has Gabriel Silva indicated about his current position on an invoice?
AP: “We have been making contributions to him, but we do not know what he will propose. Still, he said it will be proposed in August. He will probably propose a general law on cryptocurrencies instead of a law only on bitcoins. I don’t care so much because in the end Bitcoin will win. “
Why do you think it should be a bitcoin-only bill?
AP “Panama has a large informal sector, meaning many people do not have bank accounts or taxes. There are many more mobile phones than bank accounts in Panama. “
Author’s note: From 2015 it is estimated that 70% of Panama’s population is non-banking.
“It makes a lot of sense for Panama to adopt bitcoins because (1) it doesn’t have its own currency, (2) the United States has used the dollar as a political weapon by cutting off supply to blacklisted countries, and (3) the degradation of the dollar it hurts dollarized countries, especially because they don’t get stimulus money from the U.S. government. ”
“And now, the Lightning Network allows for easy entry and exit ramps, so Bitcoin is in a good position to become an important part of Panama’s financial system. If not, this year is likely to have more chances in 2024 because it will be a new government.
Why might a Bitcoin bill fail?
AP “Panamanians don’t like anything the government imposes on them, so they prefer to see a people-driven bottom-up approach. Panama can be a case in which consensus must be reached from the bottom up instead of from the top down like El Salvador ”.
El Salvador had the Bitcoin Beach advantage over El Zonte as an example of how Bitcoin works in real life. Are there any examples of places in Panama that do something similar?
AP: “There are some people in Panama who take Bitcoin as payment for services now, but it’s not widespread or has the same support as El Zonte.”
What do you think will be the next country to join El Salvador in adopting Bitcoin as a legal tender currency?
AP “First of all, I distrust politicians a lot and many use laser eyes because they want to gain popularity.”
“Secondly, Latin American countries want dollars because they see the degradation of their currencies and seek stability in the dollar. They see the problem with their own currencies, but they don’t have a dollar bank account. Their expenses are very small because they earn very little. Everything they earn is physical and in dollars. Therefore, they waste a lot of time with this system. It is unlikely that the Bitcoin layer itself will be adopted by people. Lightning Network is what will make it really work, it changes everything. So, once people understand the benefits of adopting Bitcoin through Lightning Network, they will demand it. “
“Paraguay is interesting because with Brazil they are developing a hydroelectric power program called Itaipu Dam, which generates a lot of excess energy that they want to use for mining. However, there is a rule that miners must register with the government or risk imprisonment. “
“The next one will probably be a smaller country like Honduras, Guatemala or another country with a lot of remittances.”
“I do not expect any countries this year. It will probably depend on which countries adopt the Lightning Network faster. ”
You can find Abelito on Twitter @AbelitoPanama.
Interview with Joseph Isaza
What inspired you to write the bill?
JI “We have to understand that the world is changing. Ten years ago no one thought cryptocurrencies would be great today. Now that El Salvador accepts bitcoin as a currency, there are new possibilities for Panama to become a leader in this movement. If Panama accepted bitcoin as a currency, it would create a free economy and turn it into a cryptocurrency hub. ”
Who did you send the invoice to?
JI “The Panamanian assembly has a program where if you have an idea you can write an invoice and send it to the Panama City office. This proposal has to go through many legal processes to survive. My bill has already passed through the legal office of the Panamanian assembly. It is now in the first debate where it must be discussed / revised by seven deputy senators who can approve, add or reject any part of the bill. “
“If he approves the first debate, he will move on to the second debate in Parliament. At that time, the 72 senator deputies would debate the bill. If approved, it goes into a third debate with all deputies plus others such as non-governmental organizations, university professors and others. If he approves the third debate, it goes to the president, who discusses it with the Minister of Economy, before signing it into law. ”
Are other bitcoin bills taken into account?
JI “In 2019 a similar bill was proposed but not passed. The difference is that my bill aims to turn Bitcoin into a currency while the other law only tried to regulate it as to digital asset “.
“Deputy Gabriel Silva announced that he planned to propose a bill in March, but it has not been published. I proposed my bill in mid-May.”
“I also introduced another bill for cryptocurrency mining and the economics committee is reviewing it.”
When will we know if your bill will move to the second debate?
JI “The cryptocurrency bill could be passed for the second debate in a week or up to three months. It has been two months since the bill was introduced. They added an article that the government will make a commission to project analysis “.
How long will it take to pass a cryptocurrency bill to Panama?
JI “Much depends on how the price of bitcoin behaves in the coming weeks and months. If it increases, the perception of MPs and the president will be positive and they will be more favorable towards bitcoin. Another factor is the success of the implementation of the new law by El Salvador. This will greatly influence the urgency with which Panama and other countries are pursuing their own bill. ”
What is the hope that it will be the result of a cryptocurrency turnover in Panama?
JI “I hope and hope that the employment rate will increase because with this bill I propose that Panama can bring new foreign investors to the country. It is the Central American country with the fastest Internet. Therefore, it will increase the economic ease for the foreigners and citizens ”.
Who do you think will be the next country to join El Salvador in adopting Bitcoin as a legal tender currency?
JI “Maybe Columbia or Costa Rica. Colombia has American companies that invest in it like Amazon. Costa Rica has invested in Walmart. Cryptocurrencies seem to be well accepted by their people. If companies like Amazon and Walmart start accepting Bitcoin, it can move those countries to adopt Bitcoin bills faster. Maybe in Ecuador because they have the dollar as their currency ”.
You can find Joseph on Twitter @IsazaJoe.
While waiting for a second country to approve a bitcoin bill can be painful, it will happen and that country could be Panama. While Abelito and Joseph make it clear, bright minds abound and will put positive pressure on their government to make bitcoin an important part of making their future bright.
This is a guest post by Josh Doña. The views expressed are wholly unique and do not necessarily reflect those of BTC, Inc. o Bitcoin Magazine.