Mexico and Panama are also opening up to cryptocurrencies

The countries of the Central American region seem to be competing with each other to create a system that allows for fast, secure, and efficient payments.

In El Salvador last June, President Nayib Armando Bukele Ortez announced that the local legislature had accepted a proposal that any local trader who had the necessary technical conditions would be required to accept bitcoin in the future. Moreover, local taxes will be offset by the cryptocurrency. And a few days ago, the Central African Republic classified bitcoin as its official currency. President Faustin Archange Touadera has already signed the related law, making the Central African Republic the first state on the continent to accept digital money in this way.

Mexico is now joining them: although the Mexican government announced the implementation of digital central bank money earlier this year, the central bank did not comment at the time, but has now confirmed the project. Victoria Rodríguez Ceja, head of the Central Bank of Mexico (BdeM), announced in the local senate that the country’s new digital currency will be ready in three years, making the local financial and payment system more efficient in the long run. The expert explained that they have to face very complex challenges, it is enough to think about the coronavirus epidemic or the Russian-Ukrainian war – all this about the Mexican daily La Jornada. wrote.

Victoria Rodríguez Ceja said the goal is to reduce inflation to three percent by the third quarter of 2024. The head of the Central Bank of Mexico has held his position since the beginning of the year and this was his first appearance in the Mexican Senate, which lasted 4 hours. The expert believes that the new digital central bank currency will allow fast, secure and efficient payments. At the same time, the digital Mexican peso will not replace physical coins and banknotes, but will be an alternative means of allowing the majority of the population to open bank accounts.


But Panama doesn’t want to lag behind either: the Central American state parliament has comprehensive legislation voted. Under the law, taxes can also be paid in digital money and cryptocurrencies can be used to trade and store assets. The reputation of the Central American country is not very good anyway, it is mentioned as a tax haven and a place to do offshore deals.

Panamanian law is more comprehensive than El Salvador’s, so it covers not only virtual currencies, but also so-called non-substitutable coins (NFTs), which are virtually digital certificates of origin and title deeds that prove a property, precious metal, work of art , an originality of a device, image, animation, video, or other object. Under the new legislation, cryptographic assets can also be used as means of payment.

Experts believed that the law will not improve Panama’s battered financial reputation, trade will still not be more transparent. Despite concerns, President Laurentino Cortizo signs the law, which was passed by the local parliament without a vote against.


Source: SG.hu Hírmagazin – IT/Tech by sg.hu.

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