It's really good to see another country taking friendly step ahead for legalizing bitcoin and Panama has done this in reality.There were rumours around for it but now the smoke has been cleared with passion of the bill but however i see some misconceptions over the net and Twitter also where people are assuming that
BTC is legal tender in Panama which is not so true.
In actual case they have legalised the use of bitcoin payments in the country with passing of the bill and the best thing I liked about is 0% capital gain tax over it but the bill is still to be signed by the President as cleared by this tweet also :
But still it's good approach as Panama might be changing some rules giving it legal status in future but according to me if you are free to use bitcoin as payment system which is the base model for it then it's much better.The Panama's 50% population don't have a bank account and this could be game changing for them if they accept it.We have seen many people strikes and protest in El Salvador when it passed the legal status law.Hope people understand it and at last btc is free money but we can't impose it on people as it dematerialise the whole concept of freedom.
Speaking of US dollar then you can easily use it in Panama without even exchanging it as foreign currency as it's used in coexistence with the Panama legal currency Balboas in ratio of 1:1 which means 1 Balboas is equal to 1 USD .
. Since 1904 one Balboa equals one US Dollar and since then, the US Dollar has legally circulated in Panama. In other words, in practice, the currency used day-to-day in Panama is the US dollar, which is also legal tender. For this reason, Panama is considered a dollarized country and was the second economy in the continent to become a dollarized economy. Currently there are Panamanian coins that have the same weight, dimension and composition of the coins used in the USA (1, 5, 10, 25 and 50 cents). Panama also has its own $1 coin. For paper money, only the US Dollar is used (there are no paper Balboas).
For more details head to this file to check out the
Dollarised economy Panama This image speaks thousand words if you clearly understand it from depth :
The world is recognising the importance of bitcoin and how could it embrace themselves to rise against poverty to some extent and counter inflation.But still many will oppose this in fear of just losing control out of their hands but there are more important things than this.
The Bukele speculation about two more countries following the same step are turning out to be true slowly as @fillippone's thread about various countries accepting btc increases so hope this projection goes on mass scale soon.