Panama City Becomes the First City in the World to Accept Bitcoin, Ethereum, and Two Stablecoins

Panama City, the capital and the largest city of Panama, has approved the use of Bitcoin, Ethereum, and two stablecoins

Panama City, the capital and the largest city of Panama, has approved the use of Bitcoin, Ethereum, and two stablecoins for various payments across the metro, Mayor Mayer Mizrachi announced this week, marking a major milestone in the global push for broader cryptocurrency adoption.

The city council voted in favor "of becoming the first public institution of government to accept payments in crypto," Mizrachi said in a post on X (formerly Twitter) on Wednesday.

As part of the approval, residents of Panama City will be allowed to pay their taxes, tickets, permits, and other fees "entirely in crypto."

Mizrachi added that the digital assets that will be approved for city payments will be expanded in the long run, but for now, the city will accept crypto payments in the following digital coins:

Bitcoin (BTC)

Ethereum (ETH)

USD Coin (USDC)

Tether (USDT)

🇵🇦 Panama City council has just voted in favor of becoming the first public institution of government to accept payments in Crypto. Citizens will now be able to pay taxes, fees, tickets and permits entirely in crypto starting with BTC, ETH, USDC, USDT@APompliano @aantonop ...

— Mayer Mizrachi (M_) (@MayerMizrachi) September 7, 2023

According to Mizrachi, previous city administrations did attempt to push a Senate bill to allow for crypto payments, but his government "found a simple way to do it without new legislation."

He explained that for the crypto payments to be settled, the city government will "partner with a bank who will take care of the transaction receiving in crypto and convert on spot to $."

"This will be a simple and efficient process for everyone involved," Mizrachi stated.

Panama City's milestone comes amid continuing concerns over El Salvador's status as the world's leading Bitcoin adoption hub.

El Salvador under President Nayib Bukele has been pushing for BTC adoption across the country with multiple programs, including educational initiatives, partnerships with crypto firms, and a national strategic Bitcoin reserve.

However, things have become rocky in recent weeks after the Bukele administration secured a funding package from the International Monetary Fund (IMF). The multi-billion-dollar loan deal with the IMF includes an agreement to halt Bitcoin purchases throughout the funding package's duration.

Panama City rises amid El Salvador's IMF hurdles as a potential hub for not just Bitcoin adoption but broader crypto adoption.

Unlike El Salvador, which has long focused its crypto adoption efforts around Bitcoin, Panama City is expanding to Ethereum and stablecoins, which is undoubtedly a notch higher than its Central American counterpart.

If its initiative pushes through, Panama City may become the first known "crypto city," especially with plans to expand the crypto payments it will cater to in the long run.

Panama, like El Salvador, is a Central American nation, but it is more strategically positioned, being the "land bridge" that connects North and South America.

Despite being smaller than South Carolina, Panama is known for its embrace of biodiversity and its Panama Canal, which is a key route for maritime trade in the Atlantic and Pacific Oceans.

With Panama City taking the lead, the capital city could well be on its way toward cementing its place in the world's known hubs for crypto adoption.