Panama City has officially approved the use of cryptocurrencies—including Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT)—for municipal payments, marking a significant step toward digital asset integration in local governance.
Mayor Mayer Mizrachi Matalon announced the move in a post on X (formerly Twitter) on Wednesday, noting that residents will now be able to use crypto to pay for taxes, fees, permits, and tickets. The initiative places Panama City among a growing cohort of global municipalities embracing digital currencies for public services.
Unlike previous efforts that required legislative action, the current administration implemented the policy by partnering with a local financial institution. The bank will convert all crypto payments into U.S. dollars at the point of transaction, aligning with Panama’s requirement that public institutions receive payments in legal tender—currently the U.S. dollar.
“While past governments attempted to pass legislation through the Senate to enable this, we found a simpler way by working directly with a bank that handles on-the-spot crypto-to-USD conversions,” Mizrachi stated. “This approach facilitates the free movement of crypto within both the local economy and government framework.”
The development comes amid a broader trend of municipalities exploring crypto as a viable means of payment. In November 2024, the city of Detroit introduced a crypto-enabled payment option via PayPal’s platform, which now includes its own stablecoin (PYUSD) and allows users to trade assets like Solana (SOL).
Colorado became the first U.S. state to accept crypto for tax payments in 2022, while North Carolina has since introduced legislation to follow suit. Despite these advances, adoption remains modest; a recent report from Colorado Newsline revealed that just $57,211 in state taxes have been paid via crypto since the option became available—far below the billions collected annually through traditional means.
Panama City’s decision represents a noteworthy attempt to streamline crypto adoption without regulatory overhauls, possibly serving as a model for other cities weighing similar integration.
