Panama City joins global move to allow crypto payments in public sector
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Local law allows payment for taxes, tickets, and permits. City partners with banks to convert crypto to fiat. Panama bypasses national legislation through local ordinance. Panama City is set to become one of the first Latin American capitals to formally integrate crypto payments into its municipal system, allowing residents to pay for public services in Bitcoin, Ethereum, and stablecoins. This move, driven by the city’s administration and not national legislation, marks a notable shift in how governments are embracing digital assets. Panama City Mayor Mayer Mizrachi confirmed the development via a post on X (formerly Twitter) on Wednesday. He stated that locals will be allowed to settle payments for taxes, permits, traffic tickets, and other municipal fees using cryptocurrencies such as Bitcoin, Ethereum, USDC, and Tether (USDT). This step was made possible through a council-approved proposal and will be implemented in collaboration with banks that can receive and convert crypto to fiat currency. Crypto rollout starts with top tokens The new law gives local residents the option to use select cryptocurrencies instead of fiat money to meet their obligations to city hall. The digital assets initially accepted include Bitcoin, Ethereum, USDC, and USDT, which have become widely adopted across both retail and institutional ecosystems. Unlike previous efforts that attempted to implement crypto usage through national-level legislation, Panama City’s government found a way to bypass this hurdle by focusing on local regulation. Mizrachi explained that earlier governments tried to push similar measures through Panama’s senate, but his administration opted for a simpler legal workaround that avoided introducing entirely new laws. So far, there has been no official confirmation on whether other cryptocurrencies will be accepted in the future. A city representative did not immediately respond to media enquiries about the possible expansion of the asset list. Banks to handle conversion In…
