Panama Announces More Crypto Adoption: Will Accept Bitcoin and Ethereum for Public Payments
2025-04-17
In a landmark move for crypto adoption in Latin America, Panama City has announced that it will begin accepting Bitcoin (BTC), Ethereum (ETH), and stablecoins like USDC and USDT for public service payments.
Citizens will soon be able to use crypto to pay for taxes, permits, tickets, and municipal fees—a shift signaling growing institutional comfort with digital assets.
Key Takeaways
- Panama City will accept Bitcoin, Ethereum, USDC, and USDT for government-related payments.
- The initiative was passed by the city council and announced by Mayor Mayer Mizrachi.
- The city will partner with banks to automatically convert crypto into fiat for compliance.
A Bold Step for Crypto Integration
Mayor Mayer Mizrachi shared the news on X (formerly Twitter), stating that Panama City found a way to implement crypto payments without requiring new legislation. The strategy? Partner with a bank to handle the fiat conversion.
“Public institutions must receive funds in USD, so we partnered with a bank who will take care of the transaction—receiving in crypto and settling in fiat,” Mizrachi explained.
This workaround allows Panama’s largest city to bypass previous legislative hurdles that delayed similar efforts in the past.
Read more about Bitcoin (BTC):
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BTC to USD: Convert Bitcoin to US Dollar
How It Will Work
Residents will soon be able to make government payments in select cryptocurrencies, which will then be converted to dollars by a partnered financial institution. Initially, the city will support BTC, ETH, USDC, and USDT, with potential for additional tokens in the future.
There’s no confirmed launch date yet, but the move is part of a broader push to modernize government services and make Panama City a crypto-friendly hub in Latin America.
Panama’s Crypto Journey: From Veto to Innovation
While this development is promising, Panama has had a complicated history with crypto legislation. In 2022, President Laurentino Cortizo partially vetoed a crypto regulation bill, citing the need for greater financial oversight.
Despite national-level caution, local governments like Panama City are moving forward with digital asset initiatives that sidestep legislative delays while still complying with financial regulations.
Read more about Ethereum (ETH):
ETH to USD: Convert Ethereum to US Dollar
Ethereum (ETH), Market Cap, Price Today & Chart History
Global Context: Crypto in Public Services
Panama City joins a growing list of jurisdictions integrating crypto into government systems. Notably:
- El Salvador and the Central African Republic recognize Bitcoin as legal tender.
- Regions in Switzerland allow Bitcoin payments for local services.
- Fiji and Tonga have considered official adoption.
This global trend underscores a significant shift: from treating crypto solely as speculative assets to recognizing their potential as functional payment methods.
FAQs
When will Panama City start accepting crypto for payments?
The city has passed the proposal, but a specific start date has not yet been announced.
Which cryptocurrencies will be accepted?
Initially, Panama City will accept Bitcoin, Ethereum, USDC, and USDT.
Is this legal under Panamanian law?
Yes. The city bypassed the need for new legislation by partnering with banks to convert crypto to USD before it's received by public institutions.
Disclaimer: The content of this article does not constitute financial or investment advice.
