Panama City Residents Can Now Pay Taxes and Other Fees Using Bitcoin and Ethereum
Panama City Council approves using cryptocurrencies like Bitcoin and Ethereum to pay municipal taxes, permits, tickets, and fees. According to a report from Panama Banking News, the approval authorizes Panamas Mayor Mayer Mizrachi to formalize a deal with Towertrust. Inc. and Towerbank International Inc. Under the partnership, Panama citizens can pay their municipal taxes, fees, tickets, and permits using various cryptocurrencies via an escrow-like system. Mizrachi confirmed the development in a statement yesterday, noting that the system will initially support four cryptocurrencies: ETH, BTC, USDT, and USDC. He suggested that the move positions Panama City Council as the first public government institution to accept crypto payments for taxes and fees. Innovative Approach Mizrachi recounted how the previous administration attempted to approve cryptos use for tax payments via new legislation. However, his administration found a way to achieve the feat without submitting new legislation to the Senate. He emphasized that since public institutions are already structured to receive payments in U.S. dollars, the administration partnered with a bank to facilitate the conversion. Through this partnership, the bank will immediately convert received cryptocurrency payments into U.S. dollars.Mizrachi expects the new initiative to maintain the free flow of cryptocurrencies throughout the Panama City economy. https://twitter.com/Mayer/status/1912247520790737405Features of Panama Citys Crypto Tax Payments It is worth mentioning that paying taxes with crypto is voluntary. Therefore, residents can decide whether to use crypto assets or traditional methods. In addition, Panama Citys support of crypto payments will not incur additional costs for the Mayors Office and will not alter existing tax regimes. Following the support of crypto payments, Panamas citizens can meet their tax obligations from anywhere in the world. It is also expected to enhance the citys transparency in financial processes while also contributing to the modernization of its payment system. Moreover, it could prompt other government institutions to accept crypto payments for taxes and fees. Growing Adoption of Crypto for Tax Payments The use of crypto to pay taxes and other fees is becoming popular. Several cities and states, particularly the United States, already accept crypto payments for these services. For instance, Colorado accepted crypto payments in 2022, allowing its residents to pay taxes using the emerging asset. However, the crypto payment system did not record much success in the early phase. Only six crypto tax payments were recorded from September to mid-December 2022, a negligible figure compared to the 1.37 million tax payment transactions recorded during the same period. Further, other states like Louisiana and Utah, as well as cities like South Dakota and Detroit, also accept cryptocurrencies for tax payments.
Text source: The Crypto Basic
