Panama City’s government has taken a significant step towards digital asset adoption, approving the use of crypto payments for various public services.
Residents will soon be able to utilize leading cryptocurrencies, specifically Bitcoin (BTC) and Ethereum (ETH), along with stablecoins USD Coin (USDC) and Tether (USDT), to pay for municipal obligations. This includes taxes, official permits, and administrative fines.
This integration is designed to work within the existing legal framework. A designated partner bank will facilitate the transactions, immediately converting the cryptocurrency received into U.S. dollars. This ensures the city treasury receives funds in the official currency without requiring complex legislative changes.
Mayor Mayer Mizrachi explained the strategy, noting previous attempts faced legislative hurdles. “We found a simple way to do it without new legislation,” he stated. “Legally public institutions must receive funds in $, so we partner with a bank who will take care of the transaction receiving in crypto and convert on spot to $. This allows for the free flow of crypto in the entire economy and entire government.”
This development provides citizens with a modern, optional payment channel for government interactions. It fosters the local digital asset economy by enabling practical use cases for cryptocurrencies.
The city’s approach differs notably from nations like El Salvador, which adopted Bitcoin as legal tender. Panama City’s model focuses on payment flexibility and compatibility with traditional financial systems, rather than mandating a specific digital currency.