Panama City to Accept Crypto for Taxes and Public Services

In a move positioning Panama City at the forefront of digital finance in Latin America, Mayor Mayer Mizrachi revealed that the city will soon begin accepting cryptocurrency payments for various public services, including taxes, permits, and even bus fares.

The initiative, announced on April 15, enables residents to pay using Bitcoin, Ethereum, USDC, and USDT. While the national law requires all government transactions to be settled in U.S. dollars, the city has bypassed this hurdle through a partnership with a local bank that will instantly convert crypto payments into fiat. This solution allows the city to offer crypto-friendly options without changing any existing legislation.

Mayor Mizrachi noted that past administrations attempted similar efforts but were blocked by legal restrictions tied to the country’s dollar-based public finance system. Now, by integrating real-time conversion infrastructure, Panama City is carving a compliant path to crypto adoption.

This move aligns Panama’s capital with an expanding roster of cities and regions worldwide embracing blockchain technology for public finance. Similar programs have been rolled out in places like Colorado, which began accepting crypto for state taxes in 2022, and Lugano, Switzerland, which now permits Bitcoin payments for municipal fees. Vancouver and North Carolina are also exploring legislation and frameworks to include crypto in their official payment systems.

READ MORE:

Bitcoin Faces Uncertainty After Wild Swings as Sell Signals Emerge

As jurisdictions across the globe experiment with digital asset integration—some even considering Bitcoin for treasury protection against inflation—Panama City’s practical, regulation-friendly model could serve as a template for others navigating the intersection of crypto and public finance.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.