This is a big development for a number of reasons.
- Panama is a much more significant country in the world of finance than El Salvador or Central African Republic.
- Panama is HUGE in shipping with 70% of the world's ships flying the Panama flag.
- It makes a 7 other cryptocurrencies including Litecoin and Ethereum legal tender in Panama and thus foreign currency in other countries. This means trades between them will be taxed as forex transactions not capital transactions.
I want to talk a bit more the implications for shipping and the crews of ships all around the world.
A ship is subject to the laws of the country in which it is registered and whose flag it flies. In international waters these are the only laws that apply, but even in national waters of another country the laws of the flag country apply when onboard.
This means that the crew and passengers of the 70% of the world's ships that fly the Panama flag now can pay with BTC and other cryptocurrencies.
I haven't looked at the details of the Panama legislation but generally legal tender means it must be accepted in payment of debts. El Salvador went further than this and mandated adoption more generally.
I am especially pleased with this development and happened to have a Panama flag on hand to celebrate with my friend @brianoflondon.
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Thanks for this detail about ships under 🇵🇦 Panama flag. Didn‘t know that. But Panama beeing the 3rd country adopting BTC and Krypto is really good news. Lets hope it is also helping the market finding its bottom. 😋🤞🏻
greetings from Germany
Thomas
Excellent timing!
Yes the shipping aspect is a far bigger implication and I am glad you have raised this point. Most will have no clue as this is far bigger than just Panama. I wonder if ships could pay for provisions in ports around the world using crypto as this is now a legal tender for Panama registered ships. Even things like harbor fees or tolls for the Suez Canal possibly?
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Plenty of smaller countries waited for Bukele in El Salvador to be assassinated; and it didn't happen.
Panama is a huge win for us. Particularly considering the IMF just bribed Argentina to keep their banks from dealing in crypto at all.
I wonder if shipping companies will pay for passage through the canal in bitcoin.
Go Panama. Become the third country to do it officially :')
Panama likes Bitcoin. That's great to see they adopting crypto now. Good news for the shipping industry !
Great aspect, very important that should not be underestimated. In this case Panama gave even more weight to a very important aspect of cryptocurrencies: they have no borders!
This is an amazing news. Gradually Bitcoin is becoming what it is meant and created for that is to be a legal tender across countries.
In gradual process it will achieve that. I feel sorry for my country not ceasing opportunity like this.
Thanks for sharing
Cheers