Thread by @MoisesGale

🇵🇦 Panamá Blockchain, Crypto, Tokenized Precious Metal Law

21/04/2022 was a great day.

Panama achieved a great step towards the integration of the traditional financial system with new technologies and digital economies🥇

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It was approved within the legislative chamber, the first debate of a law that improves the economy of a new Panama.

The law is a mix of the 3 previous drafts of great innovative minds and deputies of the country; @gabrielsilva8_7 , Cenobia Vargas, Roberto Abrego, among others

Title: “Law that regulates the commercialization and use of crypto assets, the issuance of digital value, the tokenization of precious metals and other goods, payment systems and other provisions are dictated”

⬇️ The important points of this law are:

1. Use of crypto assets as payment, as a mean of expression of contractual and monetary freedom in Panama.
This law allows XDC, XRP, Algorand, Stellar, IOTA, Elrond, Bitcoin, Ethereum and Litecoin to be used as means of payment for goods, services and taxes within the country

1.1 The use of these crypto assets will not be forced and every user decides if they want to use it as savings, investment or if a merchant wants to accept it as a means of payment

1.2 These crypto assets were not selected randomly , it´s a combination of first, second and third generation technologies that provides utility to the current financial system, Web 3.0, trade and finance, settlement between currencies, Smart contracts, fast transactions, etc..

1.3 Also within regulations its possible to remove current crypto assets or add new ones, the standard is aiming for top level utility

2. Representation of values through blockchain: different types of goods and assets can be tokenized through blockchain as tokens, NFTs etc..

3. Creation of redeemable digital value entities: blockchain related entities will require a license to operate within the country

4. Tokenized precious metals: Panama is taking a giant step by regulating and bringing clarity to the use of tokenized precious metals (gold and silver) within the territory as a means of savings, payment for goods/services and taxes within the national territory

5. Participation of the government as an entity of redeemable digital value: this opens the way for the Panamanian government to create its own digital asset exchange platform and wallet ⬇️

5.1 providing the latest technologies, transparency and security for the citizens of these new technologies.

In addition to being a new source of income for the country with the aim of reinvesting in other areas such as: education, health, innovation, technology and others

6. Banking interoperability: this law allows synergies between traditional banking and these new digital technologies, in such a way that they are not a direct competition🤝

In addition this will bring financial inclusion to a country that has 50% of unbanked citizens

7. Freedom and non-compulsory: no citizen, company or institution is forced to use or implement these new technologies, there is freedom of use within the established parameters🕊

8. Transparency and security: There are guidelines within regulations to prevent the fraudulent use of these new technologies, the state seeks to protect its citizens and allowing sanctions for those natural or legal persons who commit crimes related to these new technologies

9. Taxes: 🙌🏼
Please read the whole document.

10. Education: no more than 7% of the global population have invested in crypto assets.
At the same time from that 7%, less than 50% have an understanding about blockchain, we are living in times of crypto maximalism when the real goal is utility and interoperability👀

10.1 For that reason this law will be focus in the education of the citizens via public and private in order to create solid bases for the use, applications and implementation of these technologies in the daily life📚

To contemplate all these points, different entities such as the Ministry of Industry and Commerce, Ministry of Economy and Finance, National Bank, Superintendency of Banks, among others, will work together to allow synergies and implementation of the law

It´s important to clarify; this was a good victory but its only the first step.

There will be a public second and third debate soon and then this document goes through the executive and president decision🤞🏽

Panama seeks to be the hub of Latin America regarding these new technologies, to be a positive example for the region and even the world 🌎

We have seen how the International Monetary Fund, the World Bank, BID, World Trade Organization, central banks around the world and giant institutions have studied, analyzed and even implemented these new technologies.

Just as humanity evolves, so do the economy and technology.

We are experiencing the fourth industrial revolution and at the same time a paradigm shift with a new financial system, as if two worlds collide into a new one with a brighter sun.

Gradually and then suddenly.

Let make the world a better place, implementing these new technologies with the focus on the positive growth of humanity🌅

#XDC #XRP #ALGO #IOTA #STELLAR #EGLD #BTC #ETH #LTC #GOLD #SILVER

Attached is the document approved in the first debate

bit.ly/leycripto_deb1