Ukraine and Panama advance in the adoption of Bitcoin while protests continue in El Salvador over its legalization

Bitcoin Adoption Ukraine Panama

This week, bitcoin has entered the real world fully. Despite opposition and new protests generated by the official adoption of bitcoin as legal tender in El Salvador, two new countries want to join the Central American country, albeit in their own way. While Ukraine has approved regulations to legalize and regulate its sale in the country, Panama has unveiled a bill to become “a country compatible with blockchain, crypto assets and the internet,” according to Panamanian congressman Gabriel Silva.

In Ukraine’s case, cryptocurrencies weren’t banned: citizens could buy and sell currencies like bitcoin, but exchange companies had to endure intense scrutiny from the country’s institutions. The new “Digital Asset Law” will define its use and will serve to protect virtual asset owners from potential fraud.

Unlike El Salvador, the new law approved in Ukraine “does not contemplate the deployment of bitcoin as a means of payment nor does it compare it to the national currency,” they point out from CryptoNews. However, it does lay the foundations for the country to open up to the cryptocurrency market in 2022.

For its part, the “Encryption Law” of the Republic of Panama seeks to convert bitcoin, as well as Ethereum and Cardano, into common payment methods, in addition to supporting the use of blockchain in the public sector and incorporating that technology in the sector. Panamanian banking. In the words of Congressman Silva, the new measure aims to “give certainty and security to crypto-assets, attract investment and generate new jobs focused on the digital economy.”

In what could be interpreted as an attempt to avoid protests such as those in El Salvador, the government of Panama will not require merchants and consumers to adopt bitcoin or any other cryptocurrency as payment methods, Yahoo! Finance

Troubled debut

The premiere of bitcoin as a legal currency in El Salvador was marked by the fall in the price of the cryptocurrency, failures in the government electronic wallet Chivo and new opposition protests in the streets of San Salvador.

The day before the new law came into force, the government of El Salvador seized 400 bitcoins, worth more than 21 million dollars, when the price of the cryptocurrency exceeded 52,000 dollars. On the same day of its premiere, bitcoin registered a  drop of more than 14%, taking it below $45,000. The Salvadoran government took advantage of the situation to buy another 150 bitcoins, worth about 7 million dollars.

Coinciding with its debut, around 1,200 people again took to the streets of the capital to protest against the mandatory adoption of cryptocurrency. Citizens saw that one of the biggest concerns regarding bitcoin, its volatility, was supported by the fall in the price of the cryptocurrency.

There were also problems when downloading the government electronic wallet. Due to insufficient server capacity, the government was forced to temporarily disconnect it. 

Still, some international companies have started accepting bitcoin payments in the country. According to  Forbes, in the 19 locations that the McDonald’s fast-food chain has in El Salvador, you can pay with this cryptocurrency, as well as online and through its application.