Panama City Residents Now Allowed To Pay Taxes And Other Fees With Bitcoin, Ether
Panama City has adopted crypto-based tax payments following a city council vote this week, signaling growing momentum for integrating digital assets into public services. Panama joins a growing list of jurisdictions globally that have voted to accept such payments.
Crypto As Payment For Public Services
Panama City is now accepting cryptocurrencies as a form of payment for certain services.
Mayor Mayer Mizrachi Matalon announced on Wednesday in an X post that residents can pay their municipal taxes, fees, parking tickets, and permits using a handful of cryptocurrencies through an escrow-like system. The mayor confirmed that the system will initially support Bitcoin and Ethereum, alongside stablecoins USDT and USDC.
He indicated that the move positions Panama Council as the first public institution in the country and one of the first worldwide to accept digital assets for government transactions.
Mizrachi said the Panamanian capital implemented the policy without introducing new legislation. Prior administrations tried to push a bill in the Senate to make this possible, but we found a simple way to do it without new legislation, he posited.
In order to facilitate crypto payments to its local government offices, Panama City will partner with local banks equipped to receive digital assets and convert them to US dollars to allow for the free flow of crypto in the entire economy and the entire government, Mizrachi explained.
Growing Crypto Adoption
Panama Citys pro-crypto push comes amid increasing global adoption of crypto assets as mediums of exchange.
El Salvador became the worlds first country in 2021 to accept Bitcoin as legal tender, with the Central African Republic following roughly a year later. Other countries like Brazil and Tonga have also mulled adopting the benchmark crypto as an official currency.
In the United States, several states, including Colorado, North Carolina, and Detroit, already accept crypto for tax and fee payments.
Text source: ZyCrypto
