Chiara Bianchi
Panama City has officially authorized the use of cryptocurrencies for municipal payments, allowing residents to pay taxes, permits, tickets, and fees with Bitcoin (BTC), Ethereum (ETH), USDC, and USDT, according to an announcement shared Wednesday by Mayor Mayer Mizrachi Matalon on X (formerly Twitter).
Mayor Mizrachi highlighted that this move was made possible without passing new laws, unlike previous administrations that attempted to push similar proposals through the Panamanian senate. Instead, the city partnered with a local bank that will instantly convert crypto payments into U.S. dollars, which remain the official currency in Panama.
โWe found a simple and legal solution,โ Mizrachi said. โBy collaborating with a financial institution, we can accept crypto payments while ensuring the city receives USD as required by law. This opens the door for seamless crypto adoption across both the local economy and public sector.โ
Panama Joins Global Movement Toward Crypto-Friendly Governance
Panama City now joins a growing list of global municipalities integrating digital assets into public finance systems. Similar initiatives have been seen in cities across the United States. For example, Detroit began allowing crypto payments via PayPalโs platform in late 2024. PayPal, which now offers crypto trading and its own stablecoin (PYUSD), has played a central role in bridging digital currencies with traditional payments.
On a broader scale, Colorado became the first U.S. state to accept crypto tax payments in 2022. North Carolina also proposed legislation to enable residents to pay taxes using select cryptocurrencies, as previously reported by PRIME.
Adoption Still Slow, Despite Regulatory Progress
While regulatory efforts are making crypto payments more accessible in public services, actual usage remains limited. In Colorado, for example, just $57,211 worth of taxes were paid in crypto since the policy was introduced โ a modest figure compared to the billions collected annually by the state.
Still, Panama Cityโs integration of crypto payments marks a step forward in mainstreaming blockchain-based finance within government systems, especially in Latin America where financial innovation is accelerating rapidly.
