Through the first blockchain technology company registered in its Stock Exchange, Australia chose Panama to establish the first cryptocurrency investment fund hub in Latin America.
It is expected to be operational before the end of 2018; it was known that the selection of Panama is due to the fact that there is an attractive environment to host this type of innovation. Panama has made determined inroads into the use of new technologies such as blockchain in the modernization of its financial services platform, through a governmental initiative, which will allow it to recover its competitive advantage.
The blockchain technology company, which today has 9 million Australian dollars, said that Panama also offers other benefits by working hand in hand with regulators, industry and companies specializing in technology. “Panama can make a difference in the coming months,” he said.
In Panama it will take time to adapt, but if accompanied by the hand of regulators and the financial industry, the investment fund will soon have a greater presence, as in Lithuania, Western Europe, the Philippines, Mexico and China; although in the latter it is still not legal.
Currently, the emissions market is valued at $ 280 trillion, of which 0.1% is in cryptocurrencies. According to specialists, the cryptocurrencies and the technology that surrounds them is here to stay and they definitely changed the way of doing business in the future, because the traditional scheme is very expensive, which will force the bank to change.
The physical money that we know will disappear and ‘whoever does not become innovative, will expire’, they agree.
Experts say that one of the advantages of having cryptocurrencies is that inflation is eliminated, since there is a cap of 2,034 and the idea of printing more paper money is discarded.
They comment that ‘today the markets are run by millennials, who want to make payments and transactions with digital money.
In the case of Australia, very little money is used on paper, as the transactions that use it by law are less than 10 thousand Australian dollars ($ 7,534 at today’s exchange rate). They also point out that in Europe they work with a law of up to 500 euros and in India they do not approve high value coins.
The Panamanian government is looking at how to participate, in the private sector it seeks to attract contracts from financial groups and the large number of foreign travelers that the country receives, added to its great potential for the use of information technologies, make it the first site where we want to expand in Latin America, “they explain.
To establish the first blockchain technology company in Australia, it took between 2 to 5 years. Before they had several lobbies with the authorities to change the tax code, establish laws with cryptocurrencies, convince the regulators in a concentrated manner in the business risks, a situation that after analysis and debate was approved.
Five recommendations that every investor should have clear: To whom he buys the cryptocurrency; once purchased, not keep it in the group, but in another part; establish more than one electronic signature to make stock movements, to change crypts there are sites seven days a week, 24 hours a day, so no schedules are required and it is not recommended that the investor invest 100%, but only a small portion, since it could be easy for a hacker to steal them.
With good investor protection legislation, ‘the risk is the same as for a traditional investment fund’, so the recommendation is that the individual who wants to put their capital there does so through a collective fund, because ‘it decreases the risk ‘, which makes the project they presented in Panama attractive.
The experts are scheduled to examine the conditions of Colombia, Mexico, Peru, Brazil and Argentina in the next six months.