Panama City is taking a big step into the future by becoming one of the first towns in Latin America to accept cryptocurrency as payment for city services like taxes, permits, and even bus fares. Mayor Mayer Mizrachi made this forward-thinking choice on April 15. Panama’s capital is one of many places around the world that are adopting digital assets to keep their financial systems up to date and attract investment.
Big Digital Innovation Leap
Accepting Bitcoin (BTC), Ethereum (ETH), US dollars (USDC), and tether (USDT) is a big step forward for the city’s digital change. Mayor Mizrachi says the move will let people and companies pay their taxes with popular cryptocurrencies once the proper crypto-to-fiat payment infrastructure is in place. The city has teamed up with a bank to quickly turn digital assets received into US dollars. This ensures that the government stays in line with federal rules on money.
Overcoming legal obstacles
Legal requirements required transactions to be in US dollars, which prevented previous governments from adding crypto payments to public services. Instead of passing new laws, Mayor Mizrachi’s office devised a creative solution: they teamed up with a bank to handle “real-time conversions.”
Joining the Global Crypto-Friendly Movement
People have taken similar steps in other parts of the world, like Panama City. In 2022, Colorado, USA, started taking cryptocurrency as a tax payment. Meanwhile Lugano, Switzerland, called itself a “Bitcoin city” by letting people pay for city services with cryptocurrency. Vancouver, Canada’s city council, passed a motion in December 2024 to investigate how to add Bitcoin to the country’s banking systems.
A Bold Economic Growth and Modernisation Step
This project encourages new ideas in finance and shows that Panama City wants to become a center for crypto investment and technology. By using blockchain-based payment options, the city improves its digital infrastructure and makes itself more competitive on a global scale.
Conclusion
With its well-thought-out and legal approach, Panama City is one of many governments using digital assets to their full potential. As the use of cryptocurrencies grows worldwide, it’s clear that Panama’s capital wants to be the leader in “modern, efficient, and inclusive governance.”
