Panama City Accepts Bitcoin, Ether, USDC, USDT for Government Payments

Panama City has announced a significant step towards embracing digital currencies, as Mayor Mayer Mizrachi declared on April 15, 2025, that the city will begin accepting Bitcoin, Ether, USDC, and USDT for various government payments, including taxes, bus tickets, and permits. This initiative positions Panama City as one of the growing number of jurisdictions worldwide that are integrating cryptocurrencies into their financial systems.

The new payment option will be available once the necessary infrastructure for converting crypto to fiat currency is established. Mizrachi shared this development through a post on the X social media platform, highlighting the city's commitment to modernizing its payment systems. The city council's vote in favor of this move marks a historic decision, making Panama City the first public institution in the region to accept cryptocurrency payments.

Previous attempts to implement cryptocurrency payment options in Panama City faced regulatory hurdles, as local laws required payments to be denominated in US dollars. However, Mizrachi revealed that the city has found a solution by partnering with a bank that will immediately convert any received digital assets into US dollars. This approach allows the municipality to accept cryptocurrency payments without the need for new legislation, ensuring compliance with existing financial regulations. The immediate conversion model helps manage the volatility risks associated with holding cryptocurrencies, mirroring strategies used by other governments that have adopted crypto payment options.

Panama City is not alone in its embrace of cryptocurrency. Several other municipalities, states, and national governments worldwide are exploring or implementing similar initiatives. For instance, Colorado began accepting crypto for tax payments in September 2022, immediately converting received crypto to fiat currency. Lugano, Switzerland, announced in December 2023 that taxes and city fees could be paid in Bitcoin, earning it the title of a “Bitcoin city.” In Canada, Vancouver's city council passed a motion to become a “Bitcoin-friendly city” in December 2024, exploring the integration of Bitcoin into its financial system. More recently, North Carolina has been considering legislation that would formalize cryptocurrency as an accepted payment method, with state lawmaker Neal Jackson introducing “The North Carolina Digital Asset Freedom Act” on April 10, 2025. If passed, this bill would recognize cryptocurrencies as an official form of payment for tax obligations, further expanding the acceptance of digital assets by government entities.

Beyond tax payments, some jurisdictions are exploring broader applications of blockchain technology, including strategic Bitcoin reserves to protect public treasuries from inflation and pro-crypto policies aimed at attracting investment and fostering innovation in the blockchain sector. Panama City’s decision to accept cryptocurrency payments represents a practical approach to digital asset integration, providing residents with additional payment options and potentially increasing convenience for those who hold cryptocurrencies. As more governments explore similar options, the trend of public sector crypto adoption continues to grow, reflecting a global shift towards embracing digital currencies in public finance.