- Panama City Council is first in the country to let residents pay taxes, fees, fines and permits using Bitcoin, Ethereum and stablecoins.
- A partnered bank will handle crypto transactions by converting payments at spot rates to U.S. dollars, ensuring legal compliance and streamlined processes.
- Acceptance of Bitcoin, Ethereum, USDC and USDT facilitates digital finance, enhances service access and strengthens Panama City’s regional role in public payments.
Panama City Council has approved a plan enabling residents to pay public service fees with cryptocurrencies including Bitcoin, Ethereum, USDC and USDT. This move makes the city the first government body in Panama to accept digital assets for municipal payments.
Panama Launches Crypto Payment System for Public Services
The new policy enables citizens to use Bitcoin (BTC), Ethereum (ETH), and stablecoins USDC and USDT for paying taxes, fees, fines, permits, and even bus tickets. Mayor Mayer Mizrachi Matalon announced the move during April 15–16, confirming that Panama City is the first government entity in the country to adopt crypto payments.
A tweet from the mayor stated: “Panama City council has just voted in favor of becoming the first public institution of government to accept payments in Crypto. Citizens will now be able to pay taxes, fees, tickets and permits entirely in crypto starting with BTC, ETH, USDC, USDT.”
This development provides residents with new payment options for accessing public services. It also supports more flexible and modern financial systems within the city administration.
Legal Structure and Banking Support Behind the Plan
The initiative was made possible without passing new national legislation. Mayor Mizrachi explained that while public institutions must legally receive payments in U.S. dollars, a banking partnership allows for a compliant process. The system works by accepting crypto and converting it instantly to dollars.
Mizrachi stated: “Legally public institutions must receive funds in $, so we partner with a bank who will take care of the transaction—receiving in crypto and convert on spot to $.”
This structure ensures compliance with national currency laws and avoids holding volatile assets directly. It also ensures a seamless process for both the city and the residents.
Using this method, the city maintains legal consistency while offering practical tools for digital payments.
Advancing Panama City’s Role in Financial Modernization
With this move, Panama City positions itself as a regional leader in government use of blockchain-based payments. It also strengthens the city’s commitment to modernizing public services through technology.
The city’s approach allows for integration of digital assets into public systems without changing national laws. It also encourages broader adoption of digital finance in other sectors.
By partnering with financial institutions, the city can manage risk while offering innovative services. This structure may serve as a reference for similar projects across the region.
