Catenaa, Friday, April 18, 2025- Panama City will begin accepting Bitcoin, Ethereum and select stablecoins as payment for public services, marking a major step toward cryptocurrency adoption in Latin America’s financial systems.
City Mayor Mayer Mizrachi announced Wednesday that local government offices will accept Bitcoin, Ethereum, USDC and USDT for payments including taxes, permits, fees and fines. The move, approved by the city council this week, circumvents the need for new legislation by partnering with a local bank to convert digital assets into U.S. dollars, which remain the country’s official legal tender.
“Previous administrations tried to pass this through legislation,” Mizrachi wrote on social media platform X.
“We found a simple way to do it through banking partnerships.”
The development comes amid rising global acceptance of cryptocurrency. El Salvador declared Bitcoin legal tender in 2021, followed by the Central African Republic. Switzerland has also enabled crypto payments in several municipalities, and Pacific nations like Fiji and Tonga are exploring similar frameworks.
Panama City’s decision marks a departure from the national government’s earlier caution. In 2022, President Laurentino Cortizo partially vetoed a bill that would regulate Bitcoin and legalize decentralized autonomous organizations, citing concerns over its alignment with financial regulations.
It remains unclear whether additional cryptocurrencies will be added to the list of accepted assets. City officials have yet to confirm when implementation will begin.
