KEY POINTS
- Panama City will allow for city fees to be settled 'entirely in crypto': Mayor Mizrachi
- The city's move comes amid rising concerns over El Salvador's Bitcoin hub status
- Panama City may be on track to becoming the first known 'crypto city'
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 move comes amid increasing concerns about whether "Bitcoin Country" El Salvador will be able to retain its place as the leader in global efforts toward BTC adoption.
Panama City Moves Closer to the El Salvador Dream
Mizrachi revealed that the Panama City Council has voted in favor "of becoming the first public institution of government to accept payments in crypto."
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 hinted 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.
— Mayer Mizrachi (@Mayer) April 15, 2025
Citizens will now be able to pay taxes, fees, tickets and permits entirely in crypto starting with BTC, ETH, USDC, USDT@APompliano @aantonop…
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 $."
Panama City on Track to Becoming the First 'Crypto City'?
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: A Strategic Move for a Strategically-Positioned Nation
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.
