Panama City is taking a major step toward cryptocurrency adoption by announcing that it will now accept Bitcoin, Ethereum, and stablecoins such as USDC and Tether as payments for public services. This move, confirmed by Mayor Mayer Mizrachi, aims to streamline transactions for residents by allowing them to pay taxes, permits, fees, and tickets using digital assets.
The city council approved the proposal this week, signaling Panama City’s growing acceptance of cryptocurrencies. To facilitate these payments, the city will collaborate with banks to convert cryptocurrencies into fiat currency, making it easier for locals to make transactions.
While Panama City’s stance on digital currencies has evolved, the broader legal environment in the country has been more cautious. In 2022, President Laurentino Cortizo vetoed a bill that sought to regulate Bitcoin and decentralized organizations, citing concerns over its alignment with Panama’s financial system.
Despite past resistance, Panama’s recent decision follows a global trend of increasing crypto adoption. Countries such as El Salvador and the Central African Republic have already recognized Bitcoin as legal tender, while some regions in Switzerland have begun accepting cryptocurrencies for public services as well.