In a bold move that bridges ancient commerce with digital innovation, Panama City has become the first public institution in Panama to embrace cryptocurrency for municipal payments. The city council’s April 2025 approval authorizes Mayor Mayer Mizrachi to finalize arrangements with Towertrust Inc. and Towerbank International Inc., establishing the necessary crypto-to-fiat rails for implementation. Citizens will soon pay their taxes, permits, fines, and even bus tickets using digital currencies from anywhere in the world.
Unlike El Salvador’s mandatory approach, Panama City’s system makes crypto payments entirely optional. The initial rollout supports Bitcoin, Ethereum, Tether, and USD Coin—digital assets that will instantly convert to US dollars upon receipt. This clever workaround sidesteps constitutional requirements that public institutions receive funds in USD while avoiding additional costs for the Mayor’s Office.
Panama City embraces crypto on its own terms—optional payments seamlessly convert to dollars, deftly navigating constitutional requirements.
“It’s like watching ancient mariners discover GPS,” remarked one local tech entrepreneur, capturing the contrast between Panama’s traditional banking sector and this digital frontier. The city’s approach neatly circumvents the legislative roadblocks that derailed previous national efforts. Bill 697—passed by the National Assembly in 2022 but ultimately declared unconstitutional after presidential vetoes and court challenges—tried and failed to establish similar provisions countrywide. With stablecoins facilitating enterprise-level transactions, the city’s adoption marks a significant step toward mainstream cryptocurrency acceptance.
Panama City now joins a growing global community of jurisdictions accepting crypto for government payments. The city council made this significant advancement with a unanimous vote that demonstrated strong local support for cryptocurrency adoption. Like Colorado’s system in the United States, the conversion happens immediately, protecting municipal coffers from cryptocurrency’s notorious price swings. The virtual coins become actual dollars before they can evaporate in a market crash. This implementation is expected to enhance transparency in the city’s financial processes while modernizing payment systems.
Beyond modernization, the initiative aims to enhance financial transparency and position Panama City as a regional pioneer in crypto adoption. The warm tropical air may soon carry whispers of blockchain transactions alongside the traditional sounds of commerce in this isthmus city.
Other Panama municipalities watch closely, wondering if their citizens’ digital wallets might soon connect directly to public coffers. For now, Panama City stands alone at this crossroads of financial tradition and borderless innovation.
