Panama Town has become the first city in the world to adopt the official payment of cryptocurrency payment. Now in Panama Town, cryptocurrency such as Bitcoin (BTC), Ethereum (Ethreum, USD Coin (USDC) and Tether (USDT) can be used to pay taxes, fees, tickets and permits. This step is not only Panama Town, not only the Global Level in the growth of cryptocurrency use at the global level. Earlier, El Salvador is the first country to adopt Bitcoin as a legal tender, as well as Announcement to create world’s first Bitcoin Town in El Salvador Was also done.
Panama Town’s Innovative Crypto Adoption Style
Panama Town has taken out an innovative solution to adopt cryptocurrency. In which Panama Town has partnered with a local bank, which immediately converts the cryptocurrency payments into the USD. This does not cause any legal problem in government payments and Cryptocurrency has been included in the normal payment system without any hassle.
Panama Town vs. El salvador style
The model of Panama Town is quite different from El Salvador and Central African Republic’s crypto adoptation model. In 2021, El Salvador adopted Bitcoin as a legal tender, but due to the volatility of Bitcoin, there was a lot of problem. Panama Town has kept crypto payment optional and has only used as a payment method. This reduced the risk of volatility and there was no need to bring any major changes in the government system.
Why is the model of Panama Town more promising?
The model of Panama Town is quite different from the model adopted so far for Crypto Adoptation. Here the crypto payment is optional, and cryptocurrency is adopted as just a payment method without making legal tenders. This model can be a promising example at the global level as it will implement the risk related to the Voltibility of Cryptocurrency.
What is being done for Crypto Adoption at Global Level?
The use of cryptocurrency is growing rapidly in many parts of the world, many countries of the world are building their Central Deposit Virtual Forex (CBDC), as well as preparing policy and strategy about cryptocurrency:
United States
Donald Trump, who won the USA elections, has agreed to Digital Assets Friendly Defi Invoice. Along with this, he has announced to create a “Strategic Bitcoin Reserve”, in which the government already had the present. Bitcoin Will be placed as a National Reserve Asset. The USA has already announced to work towards making itself “Crypto Capital of the World”.
China
In 2021, China banned cryptocurrency, but now he is reforming the Anti-Cash Laundering (AML) Act to regulate crypto transaction. In addition, China is expanding its Central Deposit Virtual Forex (E-CNY), reducing the dependence on Bitcoin and other detelized cryptocurrency. However, the ban on the China decentralized cryptocurrency continues and is promoting the centralized digital currency based on the blockchain generation. But China is different in global trade. After the recently started tariff war, Russia and China have started trading in Bitcoin.
Pakistan
The Government of Pakistan has recently formed “Pakistan Crypto Council (PCC)”. It aims to regulate and promote Crypto and Blockchain Technology. Binance’s co-founder changeg zhao has been appointed as an adviser of Pakistan Crypto Council, which is making this initiative even more promising.
Bhutan
recently, Bhutan becomes fourth largest BTC Holder Was. Along with this, Bhutan has started mining “Green Cryptocurreny” using its 100% hydropower based energy. It corresponds to Bhutan’s Rude Nationwide Happiness (GNH) Philosophy. This step of Bhutan not only promotes cryptocurrency, but also gives priority to sustainable crypto development.
Russia
Russia is developing its domestic stabilcoin. This step has been taken by Russia to counter the International Sections on itself. Russia’s Ministry of Finance has emphasized the need for a stabilcoin to make international crypto transaction easily.
Conclusion
This step of Panama Town is a promising solution that incorporates cryptocurrency in the government system without any large legal or economic changes. This approach can open new routes to adopt crypto at global level.
Also read:SEC’s Third roundtable, Issues related to Crypto will be discussed
