The capital of Panama will soon allow the payment of taxes and public services using Bitcoin and other cryptocurrencies.
According to La Prensa, the Panama City Council has approved a proposal that will enable local offices to accept payments in Bitcoin and other digital currencies. As announced by Mayor Mayer Mizrachi on X, citizens will soon be able to use various digital assets to pay taxes, fines, permits, and other government fees.
The system will accept Bitcoin, Ether, and the stablecoins USDC and Tether (USDT). In his post, Mizrachi stated:
To facilitate these transactions, Panama City will partner with a bank equipped to receive digital assets and convert them into fiat currency, as confirmed by Mizrachi:
“By law, public institutions must receive funds in dollars, so we partner with a bank that handles the transaction—receiving in crypto and converting instantly to USD. This allows for the free flow of crypto throughout the economy and the entire government.”
Several cities, including some in the United States, have recently explored allowing cryptocurrency for government-related payments. In November 2024, Detroit offered residents the option to pay city taxes and fees through a PayPal-integrated payment platform. North Carolina has also introduced a bill to allow residents to use certain cryptocurrencies for taxes and other government transactions.
