Panama City has officially approved the use of cryptocurrencies for municipal payments, marking a significant step toward digital asset integration in local governance. Residents can now pay taxes, fees, permits, and fines using Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT).
Mayor Mayer Mizrachi Matalon announced the initiative on April 15, highlighting the city council’s unanimous decision. To comply with national laws requiring public institutions to receive payments in U.S. dollars, the city has partnered with a local bank that will convert cryptocurrency payments into dollars at the time of transaction.Â
This move positions Panama City among a growing number of jurisdictions embracing digital currencies for public services. Similar initiatives have been implemented in regions such as Colorado, USA, and Lugano, Switzerland.
The adoption of cryptocurrency payments is expected to enhance financial inclusion and streamline municipal transactions. The city plans to finalize the banking partnership at an upcoming blockchain conference.
Panama City’s decision reflects a broader trend of integrating digital assets into public finance, offering residents additional payment options and potentially increasing convenience for those who hold cryptocurrencies.
