Panama City Approves Crypto Payments for Public Services

Panama City has become one of the first major municipalities in Latin America to approve the acceptance of cryptocurrencies, including Bitcoin, Ethereum, USDC, and USDT, for taxes, permits, fees, and other public services. Led by Mayor Mayer Mizrachi, the city bypasses the need for new national legislation by partnering with a bank that instantly converts crypto payments into US dollars for compliance with local law. This initiative puts Panama City among global leaders in crypto adoption, joining cities like Lugano, Switzerland, and some U.S. states and cities with similar systems. While the announcement sparked a surge in Bitcoin trading volume and price, actual usage in government payments remains uncertain, as seen in other regions like Colorado. The move comes as Panama debates a broader national crypto regulatory framework. Officials hope Panama City's model will serve as a blueprint for integrating digital assets into public finance worldwide.