Panama City Mayor Proposes Bitcoin Payments for Canal Passage

Panama City Mayor Mayer Mizrachi proposed a groundbreaking initiative to integrate Bitcoin into the Panama Canal's operations. At the Bitcoin 2025 conference in Las Vegas, Mizrachi suggested that cargo ships could pay in Bitcoin to receive expedited passage through the canal, a move that could significantly reduce wait times. The Panama Canal, a vital waterway linking the Caribbean Sea and Pacific Ocean, facilitates about 5% of global maritime trade annually and generated $5 billion in revenue between October 2023 and September 2024.

Mizrachi's proposal comes at a time when the canal is a politically charged issue, particularly after President Donald Trump's call to reclaim US control over concerns about Chinese influence and alleged discrimination against US vessels. Panama, known for its crypto-friendly stance, has already made strides in integrating cryptocurrency into its financial infrastructure. The administration has passed measures allowing cryptocurrency for public payments, including taxes, fines, and municipal fees. Mizrachi is also exploring the creation of a Bitcoin reserve for Panama City, which he believes could be implemented without legislative approval.

Mizrachi urged Panama’s lawmakers to adopt a laissez-faire approach to regulating cryptocurrency, suggesting that the government should let Bitcoin function organically before determining the appropriate policy response. He highlighted that Panama sees over $5 billion in annual Bitcoin transactions, much of which occurs in the shadows due to regulatory uncertainty. His vision for modernizing Panama’s financial infrastructure and easing economic tension through decentralized strategies positions Bitcoin as a central player in the country's future.

Mizrachi's plans are unfolding against a backdrop of domestic unrest, as Panama recently declared a state of emergency in Bocas del Toro following mass layoffs at banana giant Chiquita Brands, which claims to have suffered over $75 million in losses due to protests and blockades demanding better social protections.

Mizrachi’s proposal to allow Bitcoin payments for expedited passage through the Panama Canal is a bold move that could revolutionize the way maritime trade is conducted. By leveraging the decentralized nature of Bitcoin, Panama aims to streamline operations and reduce wait times, potentially attracting more cargo ships to use the canal. This initiative aligns with Panama's broader strategy of embracing digital innovation and positioning itself as a leader in the crypto space.

Mizrachi’s call for a laissez-faire approach to cryptocurrency regulation reflects a growing trend among governments to explore the potential benefits of digital assets without imposing overly restrictive measures. By allowing Bitcoin to function organically, Panama can gather valuable data and insights that will inform future policy decisions. This approach could serve as a model for other countries looking to integrate cryptocurrency into their financial systems while mitigating risks.

Mizrachi’s vision for a Bitcoin reserve in Panama City is another significant step towards deeper crypto integration. By creating a reserve, Panama could stabilize its financial system and provide a hedge against economic volatility. This move would also send a strong signal to the global community about Panama's commitment to embracing digital innovation and positioning itself as a leader in the crypto space.

Mizrachi’s proposal to allow Bitcoin payments for expedited passage through the Panama Canal is a bold move that could revolutionize the way maritime trade is conducted. By leveraging the decentralized nature of Bitcoin, Panama aims to streamline operations and reduce wait times, potentially attracting more cargo ships to use the canal. This initiative aligns with Panama's broader strategy of embracing digital innovation and positioning itself as a leader in the crypto space.