Panama City Mayor Proposes Bitcoin Toll Payments for Canal Ships

Panama City’s mayor, Mayer Mizrachi, proposed an innovative idea at the Bitcoin 2025 conference in Las Vegas on May 29. He suggested that cargo ships could expedite their transit through the Panama Canal by paying tolls in Bitcoin. This proposal, though brief, sparked numerous questions about its practical implementation.

During the panel discussion, Mizrachi spoke alongside El Salvador’s Bitcoin policy leaders. He mentioned that ships could “cut the line” by opting to pay their tolls in Bitcoin. This idea was presented as a way to incentivize early adopters of cryptocurrency, highlighting the potential for fast payments to integrate with traditional shipping processes.

The current system at the Panama Canal operates on a first-come, first-served basis. Any changes to this system would require approval from both the Panama Canal Authority and the national government. Shipping companies might object if they perceive that smaller carriers are being priced out, as seen in previous instances where changes to the Canal’s policies have been met with resistance.

Handling the financial aspects of this proposal would be complex. The Canal generates significant revenue, with nearly 10,000 ships passing through annually, carrying approximately 423 million tons of goods. This represents about 5% of global maritime commerce. If Bitcoin payments were allowed, the Authority would need a robust system to manage the volatility of cryptocurrency prices, ensuring that tolls remain stable and predictable.

Mizrachi has also advocated for allowing residents to pay city fees, including taxes, fines, and permits, in Bitcoin, Ether, and USDC. He proposed the idea of a Bitcoin reserve for Panama City, which contributes over half of the nation’s GDP. However, the implementation of such a reserve would depend on the support of lawmakers and national officials, as it currently remains a mayoral proposal rather than a binding plan.

Mizrachi claimed that over $5 billion in Bitcoin transactions occur in Panama annually, though much of this activity is conducted discreetly. This highlights the growing acceptance and use of cryptocurrency in the region, despite the challenges and uncertainties that come with integrating it into established systems.