Following the president’s signature, the bill will govern the use of bitcoin as a form of payment in the country.

Panama has unanimously adopted new laws to govern the country’s Bitcoin and cryptocurrency marketplaces, bringing the expanding industry out of the shadows.

The new legislation governs the trade and usage of cryptocurrencies, the issuance of digital value, the tokenization of precious metals and other assets, payment systems, and other regulations, according to a tweet from the country’s Legislative Assembly on Thursday.

“This bill seeks to convert Panama into a technology innovation hub in Latin America,” said Congressman Gabriel Silva in a Thursday interview after the approval of the bill. “This is a step forward that seeks to mobilize the economy and create jobs.”

Silva noted that the law aims to offer regulatory certainty for the optional use of cryptocurrencies as payment in Panama. Furthermore, the idea is to encourage global corporations to create offices in the Central American country while also encouraging local entrepreneurship in the cryptocurrency services industry. Bitcoin will be subject to the country’s territorial tax system, which means there will be no capital gains tax on investments in the peer-to-peer currency.

“Over 50% of Panama’s population doesn’t have a bank account,” Silva said. “This helps people participate in the digital economy and receive payments from tourists that come to Panama. It helps in the financial inclusion of Panamanians.”

The bill is now on its way to Panamanian President Laurentino Cortizo’s desk, where he will have the choice of vetoing it or signing it into law.

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