The impact of cryptocurrencies continues to be felt around the globe.
Lawmakers in Panama's National Assembly on April 28 approved a major bill to regulate the use and commercialization of crypto assets in the Central American country, Reuters reported.
Bitcoin Becomes Official
The bill opens the door to private and public use of such assets and will make it possible for people to pay their taxes with cryptocurrencies.
The bill now passes to President Laurentino Cortizo to be signed.
In response, one person tweeted a clip from the show "Seinfeld" showing Jerry and Elaine running through an airport.
"All of us running to catch the next plane to Panama," the caption read.
Meanwhile, Central African Republic adopted bitcoin as an official currency, the presidency said on April 27.
The country's National Assembly unanimously passed the bill, allowing President Faustin-Archange Touadera to sign it into law.
The country will use bitcoin as the national currency along with the Central African CFA franc, a regional currency governed by the Bank of Central African States (BEAC). It's also used in six African countries: Cameroon, Chad, Congo, Equatorial Guinea, and Gabon.
The decision makes Central African Republic the first country in Africa to back bitcoin and the second in the world, following El Salvador, which adopted bitcoin as legal tender last year.
In addition, the Cuban central bank issued regulations on April 26 for virtual asset service providers.
The bill opens the door to private and public use of such assets and will make it possible for people to pay their taxes with cryptocurrencies.
The bank authorization requires those wishing to use cryptocurrencies to obtain a license, Reuters reported.
Financial Mayhem?
The bank said it would consider the legality, socioeconomic interest and project characteristics of any request before granting a license, which would be valid initially for one year.
"Sure. Another unstable undemocratic nation allowing crypto," one person tweeted about Cuba. "Expect financial mayhem rather sooner than later.
"Cuba isn't a dictatorship. Turn off your TV, ma'am," another person responded.
Central African Republic's decision also provoked a variety of reactions on social media.
"It’s truly amazing to see how far #btc has come is such a short amount of time," one person said on Twitter. "The world is waking up to the vast potential of #bitcoin."
"The narrative shift from 'it's not legal tender' to 'it's bad legal tender' is already happening," one person tweeted. "Only 11% of people in the Central African Republic have access to the internet. Soon enough, the IMF will publish a paper on the failed adoption of #Bitcoin in these states."
In January, the Executive Board of the International Monetary Fund urged El Salvador to remove bitcoin's legal tender status, citing concerns about "financial stability, financial integrity, and consumer protection."
The report said that adoption of a cryptocurrency as legal tender "entails large risks for financial and market integrity, financial stability, and consumer protection," and can also "create contingent liabilities."
In addition, Brazil's Senate recently approved a bill on cryptocurrencies during a plenary session, paving the way for official regulation of crypto in the world's ninth-largest economy.
First introduced in 2015, the bill allows Brazil's executive branch to create rules on virtual assets. The bill still needs to decide if Brazil's central bank, Securities and Exchange Commission, or a brand-new body will regulate the industry.
Brazilians earned $2.56 billion from cryptocurrency in 2021, according to Chainalysis.
