Panama City Accepts Bitcoin,Ethereum for Public Services

Panama City has taken a significant step towards embracing cryptocurrencies by announcing that it will accept Bitcoin and Ethereum as payment for public services. This move underscores a growing trend of crypto-friendly policies within the city and the broader region of Panama. The city's council recently passed a proposal that allows local government offices to receive payments in several digital assets, including Bitcoin, Ethereum, and the stablecoins USDC and Tether (USDT).

Mayor Mayer Mizrachi announced the development on X, highlighting that this initiative does not require new legislation. Instead, the city will partner with banks that can handle crypto transactions, converting the digital assets into fiat currency. This approach ensures that public institutions receive funds in the required legal tender while accommodating the growing use of cryptocurrencies.

The decision to accept cryptocurrencies for public services comes at a time when digital assets are gaining wider acceptance globally. In 2021, El Salvador became the first country to recognize Bitcoin as legal tender, followed by the Central African Republic. Other nations, such as Fiji and Tonga, have also explored the possibility of recognizing Bitcoin as an official currency. In Switzerland, certain regions have already approved Bitcoin payments for public services, further illustrating the global trend towards digital currencies.

Despite this progressive stance, Panama's relationship with cryptocurrencies has not always been straightforward. In 2022, President Laurentino Cortizo partially vetoed a bill aimed at regulating Bitcoin and legalizing decentralized autonomous organizations. The president cited the need for the bill to align with existing financial regulations, sending it back to the National Assembly for further debate. This incident highlights the complex and evolving nature of cryptocurrency regulation in the region.

Panama City's decision to accept Bitcoin and Ethereum for public services is a clear indication of its commitment to embracing digital currencies. By partnering with banks to facilitate these transactions, the city is paving the way for more widespread adoption of cryptocurrencies in public services. This move not only aligns with global trends but also positions Panama City as a forward-thinking region in the realm of digital finance.