The Panama City council has approved becoming the first public authority to accept cryptocurrency payments for permits, fees, tickets, and taxes. Starting immediately, residents can settle these obligations using Bitcoin (BTC) and Ethereum (ETH) as well as leading stablecoins USD Coin (USDC) and Tether (USDT).
Mayor Mayer Mizrachi made the official announcement on X, and it gets around a stalled Senate bill that wanted to make crypto payments legal. Instead, the city has come up with a novel workaround by collaborating with a nearby bank to make transactions easier. “Prior administrations tried to push a bill in the senate to make this possible, but we found a simple way to do it without new legislation,” said Mayor Mizrachi, adding “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 $.”
The city's economy can benefit from the "free flow of crypto" thanks to this pragmatic approach without the need for new legislation. This move marks a significant step toward integrating digital currencies into the fabric of local governance. The arrangement ensures compliance with legal requirements that public institutions receive funds in USD while simultaneously ensuring that payments made in cryptocurrency are instantly converted to USD. The initiative contrasts sharply with El Salvador’s bold 2021 decision to adopt Bitcoin as legal tender, a move that has faced challenges due to the cryptocurrency’s volatility.
However, Panama City’s model keeps crypto payments optional and confines public sector engagement to conversions. This improvement encourages citywide adoption of cryptocurrencies while reducing similar risks.
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