In a groundbreaking development, Panama City’s municipal government has officially authorized residents to settle public service fees using cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and leading stablecoins such as USD Coin (USDC) and Tether (USDT). The decision, approved by the city council, marks a significant step toward mainstream crypto adoption within government operations and sets a precedent for Latin America and beyond.
The initiative, announced on April 16, 2025, by Mayor Mayer Mizrachi, was achieved without the need for new legislation. Instead, the city partnered with a local bank that facilitates the conversion of crypto payments into U.S. dollars at the point of transaction, ensuring compliance with existing legal frameworks that require government funds to be received in USD. Mizrachi emphasized that this approach enables the “free flow of crypto in the entire economy and government,” providing residents with a new, efficient way to interact with public services.
This move positions Panama City as a pioneer in integrating digital currencies into municipal governance, offering an innovative model that balances crypto flexibility with regulatory compliance. It also provides a pathway for Panama’s broader digital economy to flourish, aligning with ongoing legislative efforts to establish a comprehensive regulatory framework for virtual assets in the country.
Unlike El Salvador’s controversial 2021 decision to adopt Bitcoin as legal tender, Panama’s strategy is optional and focuses on seamless integration with existing financial systems. The initiative is expected to boost crypto adoption among residents, foster financial innovation, and potentially influence other cities worldwide to follow suit in embracing digital assets for public transactions.
