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- The Start of a Digital Currency Domino Effect: Panama and Central Africa Approve Crypto Regulations
The Start of a Digital Currency Domino Effect: Panama and Central Africa Approve Crypto Regulations
Blockchain and digital assets have been around since 2010. In early 2021, cryptocurrencies surpassed the $1.3 trillion mark, becoming the fastest-growing asset class and the fifth most valuable currency in the world over the past decade.
Bitcoin is painting the world orange
History is being made in real-time. In June 2021, El Salvador officially adopted Bitcoin as legal tender and in April 2022, the Central African Republic (CAR) followed El Salvador and became the second country in the world to adopt Bitcoin, spreading the cryptocurrency to a whole new continent.
By adopting cryptocurrencies, the Central African Republic has embarked on a new and progressive development path that is popular with investors around the world. A statement from the CAR’s President said that lawmakers had voted unanimously to adopt the world’s largest cryptocurrency as legal tender. The country’s adoption means the cryptocurrency will be used alongside the French-backed CFA franc as its currency.
Panama’s bill covers the use of cryptos “without limitation”
Panamanian lawmakers pass a new bill regulating the use of the leading digital asset Bitcoin and eight other crypto-assets.
According to Panamanian congressman Gabriel Silva, the Central American country has passed a law allowing unrestricted use of nine cryptocurrencies as a means of payment for individuals, banks, and other businesses.
According to the bill, regulated digital assets include not only Bitcoin, the largest crypto-asset by market capitalization, but also Ethereum (ETH), Litecoin (LTC), Iota (IOTA), Algorand (ALGO) Ripple (XRP), and Stellar (XLM).
According to Reuters, the new law will also set rules for cryptocurrency trading, issuing digital securities, and tokenization of physical assets such as precious metals.
In addition, the law provides legal clarity on the use of cryptocurrencies, creates licenses for cryptocurrency investments, and ensures that the government will use blockchain technology to become more efficient and transparent.
What countries are next?
Nigel Green, CEO and founder of deVere Group, expects at least two more countries to adopt Bitcoin as legal tender by the end of this year.
In a new blog post, Green confirms his January prediction after news broke that the Central African Republic had become the second country in the world to officially recognize Bitcoin as a currency.
Green believes Tanzania is a likely candidate in Africa because its central bank said in 2021 that it was developing a presidential directive on cryptocurrencies. As for the Western Hemisphere, the CEO suggests that in Latin and Central America, a potential next candidate could be Paraguay or Mexico.
A Paraguayan bill aimed at regulating Bitcoin and cryptocurrency trading and mining in the country passed the Senate in December, which could be seen as a first step towards making Bitcoin legal tender. Also, a Bitcoin bill will be introduced in Mexico's Congress this year, as several politicians are on record as wanting their country to follow El Salvador's example.
Crypto at NAGAX
The digital economy around the world has experienced significant milestones, contributing to record growth in digital assets. The first and second quarters of 2021 saw notable developments in cryptocurrencies, with the digital assets market attracting not only retail investors but also large corporations looking to profit from the nascent digital asset trend.
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