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Panama Set to Follow El Salvador’s Example in Embracing Crypto

Raymond’s take: Panama explores legalising and regulating cryptocurrencies

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Raymond Hsu

CEO of Cabital

Raymond’s 10 years of experience holding leadership positions in fintech companies and banks inspired him to democratise digital currency financial solutions with Cabital.

In what could be the beginning of a global movement, Panama is following El Salvador’s footsteps in embracing cryptocurrency and blockchain technologies.

One day after El Salvador adopted bitcoin as its second legal tender, Panamanian Congressman Gabriel Silva introduced a bill entitled “Crypto Law: making Panama compatible with the digital economy, blockchain, crypto assets, and the internet.”

The bill was written to provide “legal, regulatory, and fiscal certainty to the use, holding and issuance of digital value and crypto assets in the Republic of Panama." Silva said in a tweet that the legislation could attract investment, improve government transparency and create new jobs.

That was big news, but around the same time Ukraine’s government in a unanimous vote passed a law that legalised cryptocurrencies, making it the latest country to legalise bitcoin.

With governments laying down some ground rules for the cryptocurrency industry, a clear sign that regulators around the world are realising that bitcoin is here to stay, people around the world should seriously consider investing in cryptocurrencies. 

As more governments adopt and regulate cryptocurrency, the value of them will increase. There will only ever be 21 million bitcoins in existence, and they are becoming more expensive as financial institutions, corporations and now governments are buying them to hedge against inflation and to ride the global trend of governmental cryptocurrency adoption.

One of the best investment strategies to build wealth over time is dollar-cost averaging. It is simply a technique that entails investing a specific amount of money into a fund or stock at the same time every month for a long period of time. This strategy will almost certainly get you good results as nobody can time the market. Dollar-cost averaging can be used with cryptocurrencies too and is a great way to begin building a decentralized finance portfolio.

I am confident that Bitcoin and Ethereum are here to stay and will only become more adopted and popular as time goes on. Ark Invest CEO Cathie Woods said yesterday that she expects bitcoin to rise tenfold to $500,000 within five years and has strengthened her conviction on Ethereum, laying out a preference for a 60-40 bitcoin-to-Ethereum crypto portfolio. I have similar views on the future prices of both cryptocurrencies.

After you purchase cryptocurrency on a safe and secure exchange, you can then deposit them and earn leading interests rates on certain cryptocurrency wealth management and savings platforms. This hits two birds with one stone: You own an asset that is bound to appreciate and generate passive income without any hassle.

Don’t wait forever - before you know it, one bitcoin will be out of reach for almost everyone.

Edited by: Baron Laudermilk

This article has been prepared by Cabital Fintech (LT) UAB  (the “Company”) and is general background information about some of the Company’s activities at the date of this presentation.

This article does not contain all the information that is or may be material to you and should not be considered as advice or a recommendation to you in respect of the holding, purchasing or selling of digital assets and does not take into account your particular objectives, financial situation or needs. This article has been made to you solely for information purposes. This presentation may be amended and supplemented as the Company sees fit, may not be relied upon for the purpose of entering into any transaction and should not be construed as, nor be relied on in connection with, any offer or invitation to purchase or subscribe for, underwrite or otherwise acquire, hold or dispose of any digital assets, and shall not be regarded as a recommendation in relation to any such transaction whatsoever. The contents of this presentation should not be considered to be legal, tax, investment or other advice, and you  should consult with your own counsel and advisers as to all legal, tax, regulatory, financial and related matters concerning an investment in or a disposal of such digital assets and as to their suitability for you.

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