Panama City Becomes the First Government Institution to Accept Crypto Payments

Panama City Council has voted to become the first government institution to accept crypto payments, allowing citizens to pay taxes, fees, tickets, and permits using BTC, ETH, USDC, and USDT.

Panama City Council has voted to become the first government institution to accept crypto payments, allowing citizens to pay taxes, fees, tickets, and permits using BTC, ETH, USDC, and USDT. The city has partnered with a bank that will handle the receiving of crypto payments and convert them to U.S. dollars on the spot, allowing for the free flow of crypto in the entire government and economy.

Mayor of Panama City, Mayer Mizrachi, announced today that Panama City had made history by voting to accept crypto payments for government services. According to Mizrachi, previous administrations attempted to push a bill in the Senate to make this possible, but the Panama City Council found a simple way to do it without new legislation.

“Prior administrations tried to push a bill in the senate to make this possible, but we found a simple way to do it without new legislation.”

~ Mayer Mizrachi

The idea, according to Congressman Gabriel Silva, is that Panamanians will be able to buy everyday goods with cryptocurrency if they want to. The decision also follows a growing trend of crypto adoption in various municipalities. As Panama City joins other cities in exploring the potential of blockchain technology for public finance.

Panama City Council votes to accept crypto payments

🇵🇦 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 (@Mayer) April 15, 2025

Panama has officially adopted Bitcoin and other cryptocurrencies for payments following a recent vote by the city council. As disclosed by Mayor Mizrachi, cryptocurrencies are now included among the legal means of payment recognized by the country.

The new ruling will enable citizens to use crypto assets such as Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT) to pay for most government services including taxes and licenses. The city council has partnered with a bank that will handle the receiving of crypto payments and convert them to U.S. dollars on the spot.

In 2021, Panama followed El Salvador’s lead and took steps towards officially accepting crypto payments as Congressman Silva introduced a bill to regulate its use, and announced that the Panamanian government was seeking to make the country compatible with the blockchain, crypto assets, and the internet.

Panama passed the law to regulate the use of crypto assets such as BTC in Central American countries in 2022, and it also provided a legal framework for DAOs and STOs. However, the initiative was vetoed by President Laurentino Cortizo, causing the same law to be sent back to Parliament to discuss the levied veto.

The legislative step brings Panama’s crypto adoption closer to countries such as the U.S., Argentina, and Chile, among others. No one is forced to pay with crypto, but the citizens can use it and there is a law that protects the operation if a conflict arises.

The country’s administrative units will be able to accept cryptocurrencies for the payment of taxes, rates, fees, tickets, permits, licenses, and all other obligations to the State. The government will be in charge of converting the crypto assets to U.S. dollars.

The measure was approved with five votes in favor and three against, and it now heads to the president for his signature. If approved, Panama would become the first country in Central America to accept cryptocurrencies for government services.

"We are making history today," said Mizrachi. "This is a small step for Panama, but a giant leap for the future of finance."

The decision by Panama City Council to accept crypto payments comes as several other municipalities around the world are also exploring the potential of blockchain technology for public finance. For instance, in March, the city of Lugano in Switzerland began accepting Bitcoin (BTC), Tether (USDT), and Lumo (Lغو) for public services following a partnership with Luna Foundation.

The move by Panama City Council could also encourage more businesses and individuals to accept crypto payments, ultimately boosting the adoption of digital assets in the country.