The capital of Panama is set to allow crypto payments for taxes and municipal charges.
Cryptocurrency acceptance is expanding, and Panama City now joins other local and national governments in allowing digital currencies for payments.
Mayor Mayer Mizrachi revealed on April 15 that Panama City will accept cryptocurrency for municipal fees, taxes, and services like bus tickets and permits. This move follows the global trend of jurisdictions embracing digital currency payments.
Once the city sets up the required crypto-to-fiat payment system, it will allow payments in Bitcoin, Ether, USDC from Circle, and Tether’s USDt stablecoin, according to Mayor Mizrachi’s announcement on the X platform.
Previous administrations tried to introduce similar legislation, but a rule requiring the local government to accept funds in US dollars thwarted those efforts, Mizrachi remarked.
Mayor Mizrachi stated in a translated message that the local government arranged with a bank to convert any received digital assets into US dollars on the spot. This arrangement enables the city to accept crypto without passing new legislation.
Panama City now joins a growing group of municipal and regional governments worldwide that accept crypto for taxes, assess Bitcoin reserves for inflation protection, and promote pro-crypto initiatives to attract capital.
An increasing number of municipalities and jurisdictions worldwide are adopting crypto for tax payments or exploring how blockchain can improve government spending efficiency.
In September 2022, Colorado started accepting cryptocurrency for taxes and automatically converted it to fiat, an approach that Panama City plans to replicate.
Lugano, a city in Switzerland, gained international recognition as a Bitcoin hub after it began allowing tax and municipal payments in Bitcoin in December 2023.
Vancouver, Canada, moved toward Bitcoin adoption in December 2024 after its city council passed a motion to embrace the cryptocurrency.
The motion requires Vancouver’s local administration to explore how to integrate Bitcoin into public finance, including allowing residents to pay taxes in BTC.
On April 10, state legislator Neal Jackson introduced the “North Carolina Digital Asset Freedom Act.”
In mid-2021, El Salvador legalized bitcoin, passing a bill to make it legal tender in the country. Almost a year later, the Central African Republic adopted Bitcoin, following in similar steps as El Salvador in making it a legal tender in the country.
