Panama City Considers Bitcoin Reserve Following El Salvador's Lead

Panama City Mayor Mayer Mizrachi has recently hinted at the possibility of establishing a Bitcoin reserve for the city, following a meeting with key figures from El Salvador, including Max Keiser and Stacy Herbert. These individuals are known for their influential roles in shaping El Salvador's Bitcoin policies. Mizrachi's comments have sparked significant speculation about Panama City's potential adoption of a Bitcoin reserve, similar to the approach taken by El Salvador.

Mizrachi's remarks suggest that Panama City is considering bold moves in the cryptocurrency space, potentially including the creation of a Bitcoin reserve and the implementation of a crypto tax system. These initiatives would align with the city's forward-thinking approach to financial innovation and could position Panama City as a leader in the adoption of digital currencies.

The mayor's discussions with El Salvador's top Bitcoin advisors indicate a growing interest in leveraging the benefits of Bitcoin as a reserve asset. El Salvador's experience with Bitcoin has been closely watched by other nations and cities, and Panama City's potential move could be seen as a significant step in the global acceptance of cryptocurrencies.

The timing of Mizrachi's announcement is noteworthy, as it coincides with the rollout of new crypto payment laws in Panama. This legislative framework could provide the necessary support for the city to implement its Bitcoin reserve plans, further solidifying its commitment to embracing digital currencies.

The potential establishment of a Bitcoin reserve in Panama City would have far-reaching implications for the city's financial landscape. It could attract more cryptocurrency businesses and investors, fostering economic growth and innovation. Additionally, it would send a strong signal to other cities and countries considering similar moves, demonstrating the feasibility and potential benefits of adopting Bitcoin as a reserve asset.

However, the path to implementing a Bitcoin reserve is not without challenges. Panama City will need to address regulatory and technical hurdles, as well as ensure the security and stability of its cryptocurrency holdings. The city's success in navigating these challenges will be crucial in determining the viability of its Bitcoin reserve plans.

Mizrachi has already indicated that he would be open to receiving municipal fees in cryptocurrencies such as Bitcoin, Ether, Tether, and USDC. However, this would need to proceed only when crypto-to-fiat payment infrastructure is online. A complete Bitcoin reserve, similar to El Salvador’s, would require legislative protection from Panama’s National Assembly, which Mizrachi has not yet pursued.

Max Keiser, senior advisor to President Nayib Bukele, mentioned that their conversation involved Bitcoin mining and financial education. He highlighted Panama’s hydroelectricity and El Salvador’s geothermal energy as Central American assets to further expand Bitcoin use in the region. Stacy Herbert, head of El Salvador’s Bitcoin Office, revealed Panama City plans to incorporate the “What is Money?” Bitcoin literacy textbook into its online library, a key part of El Salvador’s national curriculum.

Panama’s potential move is echoed by events in other regions, where legislatures have voted to support Bitcoin reserves. El Salvador currently holds over 6,100 BTC as part of its official reserve, a path that Panama City may also want to take. The steady rise in public company Bitcoin holdings reflects ongoing institutional confidence in the face of persistent market uncertainty.