Panama City is set to begin accepting cryptocurrencies for public service payments, indicating a shift towards a more crypto-friendly regulatory environment among lawmakers in the region.
This week, the city council approved a proposal allowing local offices to accept crypto payments, as announced by Panama City Mayor Mayer Mizrachi on Wednesday in a post on X. Under this new law, residents will be able to use various digital assets—including Bitcoin, Ethereum, and the stablecoins USDC and Tether (USDT)—to pay for taxes, tickets, permits, and fees.
It remains uncertain when or if Panama City will expand this framework to include additional digital assets.
Previous administrations attempted to advance a bill in the senate for this purpose, but we discovered a straightforward method to enable it without new legislation. Public institutions are required by law to accept funds in $, so we partner with a bank that will handle the transaction and receive in crypto…
A representative from Panama City has not yet responded to Decrypt’s request for comments on this development.
“Previous administrations attempted to advance a bill in the senate for this purpose, but we discovered a simple way to [accept crypto payments] without new legislation,” Mizrachi stated in his post.
To enable cryptocurrency payments at local government offices, Panama City will collaborate with banks that can process digital assets and convert them to fiat currency, Mizrachi further explained.
The move by Panama City to embrace cryptocurrency comes as the global adoption of digital assets as payment methods continues to rise.
In 2021, El Salvador became the inaugural country to recognize Bitcoin as legal tender, followed shortly by the Central African Republic. Additionally, Fiji and Tonga are considering making the cryptocurrency an official currency.
Swiss officials have also sanctioned Bitcoin payments for certain public services in various regions of the country.
While Panama City’s recent initiatives suggest a growing acceptance of virtual currencies, the attitude among Panamanian lawmakers has not always been favorable.
In 2022, Panamanian President Laurentino Cortizo partially vetoed a legislative proposal aimed at regulating Bitcoin and legalizing decentralized autonomous organizations, returning the draft to the National Assembly for further discussion.
He justified the veto by stating the bill “required adjustments to align with the regulations governing our financial system,” as reported by local media outlet La Prensa at that time.
Edited by James Rubin
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