Panama City will soon let people pay for public services using Bitcoin, Ethereum, and popular stablecoins like USDC and Tether (USDT). That means you’ll be able to pay taxes, tickets, fees, and permits using cryptocurrency instead of regular money. This is a big step for Panama’s capital and shows a growing interest in crypto-friendly laws across Latin America. The mayor of Panama City, Mayer Mizrachi, shared this update on the social media platform X on April 15, 2025.
The plan does not change national laws but works around them. The mayor said that past governments tried to pass new laws through the senate, but this new approach finds a simpler way to accept crypto payments for public services. The local government will work with banks that can accept digital assets and change them into US dollars. By doing this, Panama City follows the law that says public offices must receive money in dollars while still letting people pay in cryptocurrency.
The banks will handle the crypto part of the payment, so public offices will only deal with dollars. This allows the city to stay within current financial rules while offering more payment options. It also makes it easier for people who already use crypto to pay for services without converting it themselves. Many people in Panama use digital assets for savings and transfers, so this could make public payments faster and easier.
This move to allow Bitcoin, Ethereum, and stablecoins for taxes and government fees adds Panama City to the list of crypto-friendly cities. Other places have tried similar things. El Salvador made Bitcoin legal tender in 2021, meaning businesses and the government must accept it. The Central African Republic followed in 2022. In Switzerland, some areas let people pay taxes in Bitcoin. Countries like Fiji and Tonga have looked into using Bitcoin as part of their financial systems too.
While Panama’s national government has not gone as far as El Salvador, this new plan shows that city leaders want to use digital assets in public life. In 2022, Panama’s president, Laurentino Cortizo, rejected parts of a bill that would have regulated Bitcoin and allowed decentralized autonomous organizations, also called DAOs. He said the bill didn’t follow the country’s current financial rules and sent it back to lawmakers. That bill included rules for crypto exchanges and digital wallets but has not passed yet.
By letting a city-level office start using crypto, Panama may now be moving toward wider crypto use without waiting for national laws. The local approach allows for testing these payments before changing the whole country’s system. If it works well in Panama City, other parts of Panama might follow.
Cryptocurrencies like Bitcoin and Ethereum are popular across Latin America. In countries where inflation is high or banking services are limited, digital assets give people another way to save money or send it to others. Stablecoins like USDC and USDT are tied to the US dollar, so they don’t change value as much as other coins. This makes them useful for paying for services or moving money between countries.
Panama’s economy uses the US dollar as its main currency, so stablecoins make sense as a bridge between crypto and public payments. They keep their value and can be quickly changed into dollars. The city’s plan to use banks for conversion means public workers don’t need to know much about crypto to accept it.
Mayor Mizrachi said the city’s system avoids changing the law by letting banks receive the crypto and give the government dollars. This partnership makes sure everything follows the rules. It also makes the system easier to manage, since the city does not need new software or staff training to accept crypto payments.
The plan is starting with Bitcoin, Ethereum, USDC, and USDT, but it’s not clear if more digital assets will be added later. Some crypto fans use other coins, so future updates may include more choices. For now, Panama City is focused on these well-known digital currencies. Bitcoin and Ethereum are the top two cryptocurrencies in the world, and both are widely used. USDC and USDT are the most used stablecoins and are accepted by many exchanges and wallets.
This move puts Panama City on the map of crypto-friendly governments. Cities and countries around the world are starting to explore how digital assets can fit into daily life. Some use them to collect taxes. Others use them for cross-border payments or economic projects. Panama City’s plan is about making life easier for residents who already use crypto and offering more freedom in how people pay for services.
Cryptocurrency payments for public services are still new. They bring both opportunities and challenges. One challenge is making sure the system works smoothly and securely. Another is teaching people how to use crypto safely. If the system in Panama City works well, it could help build trust in digital payments. It could also push national leaders to support wider adoption of crypto across the country.
Panama has been known for its open economy and low taxes. Adding cryptocurrency payments fits this model by giving people more choices and keeping the system open. It also helps Panama City stand out as a modern, forward-thinking place in Latin America.
Some critics worry about risks like money laundering or tax evasion. That’s why cities like Panama are choosing to work with trusted banks that follow the rules. By using financial partners to handle the crypto side, the city can avoid some of the risks while still giving people more options.
Panama City’s crypto payment plan is one more step toward a world where digital assets are part of everyday life. It shows how cities can take the lead even when national laws move slowly. As people get more comfortable with Bitcoin, Ethereum, and stablecoins, demand for real-world uses will grow. Paying for taxes, fees, and permits in crypto might soon feel as normal as using a debit card.
This is not just about tech. It’s about giving people more control over how they manage their money. Digital assets can be a tool for financial freedom, especially in places where banking systems don’t reach everyone. Panama City’s move could help push more cities and countries to think differently about money.
With strong interest in cryptocurrency payments for public services, Panama City may become a model for others. It’s taking a careful but confident step into the future of finance. Bitcoin, Ethereum, and stablecoins are no longer just for investors. In Panama City, they’re becoming a real way to interact with the government and pay for everyday needs.