Panama Leverages Its Financial Hub Status To Potentially Lead Latin America In Cryptocurrency Adoption And Regulation

• The Digital and Blockchain Commerce Chamber initiates crypto training for lawmakers to foster informed regulatory frameworks.
• Participants gain practical skills in digital wallets and blockchain, enhancing their understanding of cryptocurrency operations.

Panama is grappling with substantial challenges concerning virtual assets, primarily due to a lack of technical understanding of the technology and the limited experience many citizens have with its usage. 

Nonetheless, Panama is positioning itself as a potential leader in Latin America for the adoption of cryptocurrencies, drawing on its history as a financial services hub, which potentially eases the learning curve for handling these assets.

To strengthen the country’s financial image and promote knowledge transfer, the Digital and Blockchain Commerce Chamber has initiated a series of cryptocurrency training sessions. This educational push aims to build a comprehensive understanding of virtual assets, identify needs, and evaluate regulatory topics.

Janice Becerra, president of the Chamber, stated:

“We have been conducting these training sessions with deputies and advisors of the National Assembly since 2021. We believe that it is crucial to have regulation that provides legal clarity on the use of virtual assets without over-regulating the sector. It’s vital that deputies comprehend crypto assets to devise appropriate legislation, and this knowledge must also reach central government officials who will implement these public policies.”

During the session, participants learned how to use digital wallets, grasped the importance of seed phrases, and explored blockchain functionality by analyzing Bitcoin transactions.

#Eventos | Esta semana se llevó a cabo la primera sesión de una serie de talleres sobre bitcoin y criptomonedas para asesores y diputados de la @asambleapa pic.twitter.com/JRAqqCDDxy

— Cámara de Comercio Digital y Blockchain (@ccdblock) November 2, 2024

The training also covered various cryptocurrency use cases and user profiles, as well as operational and compliance processes from the Panamanian startup Lulubit. Ianir Sonis, a representative from Lulubit, commented:

“We aim to continue supporting deputies in Panama to establish clear rules that will allow the fintech ecosystem to grow.”

Rodrigo Icaza from the Digital and Blockchain Commerce Chamber highlighted the evolution of the crypto ecosystem in Panama since 2016, noting that:

“Initially, operating with cryptocurrencies was complicated. Today, the presence of fintech actors and some banks has revitalized the sector, yet further efforts are needed to achieve greater competitiveness.”

He emphasized that Panamanian regulation should emerge not only in response to international recommendations but as a manifestation of the belief that cryptocurrencies can contribute to the country’s development, competitiveness, and market openness, while respecting Panama’s unique characteristics.

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