In a major boost for cryptocurrency adoption, Panama City has taken a bold step forward—an official announcement that it will accept digital assets for tax payments and municipal fees. The city will begin accepting digital assets for tax payments and municipal fees. The move puts Panama’s capital on the global crypto map, positioning it alongside the world’s most forward-thinking cities. By embracing crypto in its public finance system, Panama City is not only modernising government services. It’s also sending a strong message to global investors and blockchain firms: the city is open for innovation and ready to lead in the digital economy.
A Historic Step Towards Digital Currency Adoption
Panama City Mayor Mayer Mizrachi shared the news on April 15, stating that residents will soon be able to pay for a range of city services—including taxes, permits, and even bus fares—using Bitcoin (BTC), Ethereum (ETH), USDC, and Tether (USDT). The local government has partnered with a financial institution to facilitate cryptocurrency payments. The bank will instantly convert crypto payments to U.S. dollars to meet legal fiat requirements.
Previous efforts to implement crypto payment options in Panama City were stalled due to legal constraints. However, Mizrachi’s administration has sidestepped these challenges by introducing a seamless crypto-to-fiat conversion mechanism. The innovation allows the city to accept crypto without altering existing legislation, demonstrating that regulatory creativity can go hand-in-hand with technological progress.
Mayor Mizrachi’s announcement represents more than just a local policy change—it signals a strategic shift. With this move, Panama City is positioning itself as a forward-thinking municipality open to blockchain innovation, much like other crypto-friendly cities across the globe.
Global Trend: Governments Turning to Crypto
Panama City joins a growing list of cities and states worldwide embracing cryptocurrency payments. In the U.S., the state of Colorado began accepting crypto for taxes in 2022, with automatic conversion to fiat, similar to Panama’s approach. In Switzerland, the city of Lugano now accepts Bitcoin for municipal fees, further strengthening its reputation as a European blockchain hub.
Meanwhile, Vancouver, Canada, has passed a motion to become a “Bitcoin-friendly city,” and North Carolina is also considering legislation allowing residents to pay taxes in digital assets.
These moves reflect a global trend among progressive local governments to adopt crypto payments, protect treasuries from inflation, and offer greater convenience to residents.
Why This Matters for Crypto and Panama City
Panama City’s move to accept cryptocurrency for taxes and municipal fees marks a major step in the global shift toward digital finance. It’s more than a symbolic gesture—it’s a clear signal that the city is ready to embrace the future of money. By integrating crypto into its public infrastructure, Panama City opens the door for blockchain companies, fintech firms, and global investors looking for a forward-thinking jurisdiction.
With no capital gains tax on cryptocurrency transactions and a favourable territorial tax system, Panama has positioned itself as a crypto-friendly haven. It offers significant financial incentives for both local and international investors. The tax environment and the city’s forward-looking policies make Panama an attractive destination for crypto startups and established firms.
The step strengthens the legitimacy of digital assets and positions Panama as a growing hub for innovation and investment in Latin America. As more governments follow suit, the adoption of crypto in everyday transactions is becoming a reality. The shift brings new business opportunities, fosters innovation, and unlocks long-term economic potential.
Stay informed,
Rodcas Consulting Group