Panama City Council makes history as the first government institution accepting crypto payments

Panama City Council has voted to become the first government institution to accept crypto payments, allowing citizens to pay taxes, fees, tickets, and permits using BTC, ETH, USDC, and USDT. The city has partnered with a bank that will handle the receiving of crypto payments and convert them to U.S. dollars on the spot, allowing for the free flow of crypto in the entire government and economy.

Mayer Mizrachi, the Mayor of Panama City, announced today that Panama City had made history by voting to become the first government institution to accept crypto payments for government services. According to Mizrachi, previous administrations attempted to push a bill in the Senate to make this possible, but the Panama City Council found a simple way to do it without new legislation. 

The idea, according to Congressman Gabriel Silva, is that Panamanians will be able to buy everyday goods with cryptocurrency if they want to. The decision reflected a growing trend of crypto adoption in various municipalities around the world, as Panama City joined other cities in exploring the potential of blockchain technology for public finance.

Panama City Council embraces crypto payments for government services 

Panama City has officially adopted Bitcoin and other cryptocurrencies for payments following a recent vote by the city council. Mayor Mizrachi disclosed that cryptocurrencies were now legally recognized as a means of payment, and citizens could now use crypto assets such as Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT) to pay for most government services including taxes and licenses. 

In 2021, Panama followed El Salvador’s lead and took steps towards officially accepting crypto payments as Congressman Silva introduced a bill to regulate its use, and announced that the Panamanian government was seeking to make the country compatible with the blockchain, crypto assets, and the internet. 

Panama passed the law to regulate the use of crypto assets such as BTC in Central American countries in 2022, and it also provided a legal framework for DAOs and STOs. However, the initiative was vetoed by President Laurentino Cortizo, causing the same law to be sent back to Parliament to discuss the vetoed articles.

“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.”

~ Mayer Mizrachi  

The legislative step brought Panama’s crypto adoption closer to countries such as the U.S., Argentina, and Chile, among others. No one is forced to pay with crypto, but the citizens can use it and there is a law that protects the operation if a conflict arises.

Panama’s crypto use differs from El Salvador’s mandatory Bitcoin adoption 

In April 2025, Panama took a progressive step in crypto regulation with a new bill that proposed the voluntary acceptance of digital assets for payments. Panama’s approach focused on allowing businesses and individuals to accept crypto without the mandatory enforcement in El Salvador which made Bitcoin legal tender. The proposed legislation aimed to modernize Panama’s financial landscape by integrating crypto payments into its economy. 

Additionally, the bill does not limit payments to Bitcoin; it includes Ethereum, stablecoins, and other digital assets. Notably, Panama may freely agree on the use of crypto assets, including without limitation, Bitcoin (BTC), Ethereum (ETH), Ripple’s XRP, Litecoin (LTC), XDC Network (XDC), Elrond (EGLD), Stellar (XLM) and Algorand (ALGO), as a means of payment for any civil or commercial operation not prohibited by Panamanian laws. The Panamanian Constitution recognizes the plurality of currencies that can be used in the country.

According to Congressman Silva, many different types of crypto assets were emerging ‘like works of art’ and that is why Panama did not want to limit itself to any particular crypto asset. He, however, acknowledged that Panama was already in a bad position, and these crypto payment methods skipped the due diligence processes that international organizations were asking Panama to embrace.

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