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🪙 In Panama, there are businesses that have adopted payment methods using crypto assets.
🪙 There are ATMs and kiosks at strategic locations where people can buy, sell, or exchange cryptocurrencies.
🪙 Those who use it call for prompt regularization to reduce risks and boost the market.
Paying taxes with cryptocurrency in Panama will become a reality with the launch of the pilot plan announced this week by the capital’s mayor, Mayer Mizrachi, pictured below. The initiative is part of the effort to modernize and digitize municipal services, placing the municipality at the forefront of technology. However, many Panamanians still have many questions: How do you obtain cryptocurrencies? How do they work? And how do you convert them into cash?
Boris, an ordinary Panamanian citizen, became interested in these digital assets during the pandemic. Driven by curiosity, he dedicated himself to researching how they worked, how he could acquire them, and whether they could actually be used in the country. That’s how he discovered the Binance platform, where he made his first purchase. Since then, he has remained active in the crypto world.
For him, holding cryptocurrencies is like a long-term savings account. He believes there is still a lot of ignorance and little information about the use of these digital currencies, but they are gradually gaining ground. Therefore, he recommends that those who want to get involved do their research before getting involved, both to understand how they work and to avoid potential scams.
Most Bitcoin Businesses in El Salvador Quietly Vanished from the Market
El Salvador’s big bet on Bitcoin has hit a snag: nearly all the crypto firms it registered aren’t actually playing by the rules. Nearly 90% of Bitcoin service providers registered in El Salvador are not operating, according to a recent report by El Mundo, which cited data from the Central Reserve Bank, showing that out of 181 companies officially registered to offer Bitcoin services in the country, 161 are marked as “non-operating.” That’s about 89% of the total. Only 20 firms are still active. These include the government-backed Chivo Wallet, among others. President Nayib Bukele who instigated Bitcoin in El Salvador, is pictured below.
El Mundo adds that at least 22 of the inactive providers may have failed to meet the regulatory standards outlined in Article 4 of the Bitcoin Law Regulation, which requires crypto businesses to operate with “high standards of integrity and honesty.” Providers are supposed to have anti-money laundering programs, clear records of assets and liabilities, and cyber-security systems adapted to the nature of the services offered. It’s unclear how many others are behind on compliance, or whether enforcement is underway.
Breaking Paradigms of the Past
The numbers paint a stark picture of the current state of Bitcoin in El Salvador. Back in 2021, the country became the first in the world to make Bitcoin legal tender. It was a move that drew global headlines and crypto industry praise, but also concern from traditional financial institutions. President Nayib Bukele, a self-described “CEO of El Salvador,” argued that the policy would attract tech investment, lower remittance costs, and bring banking services to the unbanked. The law made Bitcoin legal tender alongside the U.S. dollar. It also required all businesses to accept it as payment, unless they lacked the means to do so. The government even launched its own digital wallet, Chivo, and handed out a $30 bonus in BTC to citizens who signed up. Still, things didn’t go smoothly. The wallet faced technical issues, adoption was limited, and a year later, studies suggested that most Salvadorans had stopped using it altogether.
In a commentary for , Hon Ng, chief legal officer of cryptocurrency exchange Bitget, which also secured crypto license in El Salvador, agreed with the data from El Mundo, saying it “highlights some significant challenges in the rollout of the Bitcoin Law.”
“With over 88% of Bitcoin-related companies still non-operational, it’s evident that there are infrastructural and institutional hurdles to address. While the legislation shows El Salvador’s vision to become a ‘crypto hub,’ further regulatory development may be required to effectively support the local ecosystem.” Hon Ng
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