Panama City Breaks Ground with Crypto Payments for Public Services
Under the leadership of Mayor Mayer Mizrachi Matalon, Panama City is taking a major step toward embracing digital currencies, becoming one of the first cities in the region to allow crypto payments for government services.
Everything from taxes and fines to permits and municipal fees will soon be payable in assets like Bitcoin, Ethereum, USDC, and USDT.
Rather than waiting for national lawmakers to resolve their ongoing debates over digital asset regulation, the city has found a way to legally implement crypto at the local level.
It’s doing this through a clever workaround: partnering with a local bank that automatically converts crypto payments into U.S. dollars—the only currency officially recognized for public sector transactions in Panama. This way, residents interact with the government in crypto, while the city continues to comply with federal finance laws behind the scenes.
This municipal-level innovation stands in stark contrast to the slow-moving national crypto legislation, first introduced in 2022 and still tied up in the Senate. Lawmakers remain divided over key aspects of the proposed bill, particularly the central bank’s role and concerns about potential constitutional conflicts.
The most recent draft attempts to regulate exchanges and digital wallets under strict AML and KYC policies, while also setting up a legal foundation for blockchain use in sectors like finance, legal services, and tokenized securities.
Panama City’s bold move could turn up the pressure on federal lawmakers by showing that crypto can be integrated into public systems without legislative overhaul. It may also serve as a proof of concept for how cities can modernize financial interactions without disrupting legal norms.
City officials have yet to confirm which wallets or service platforms will be supported in the rollout, but detailed guidance is expected in the coming months before the system is fully implemented.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
