Residents of Panama City will now be able to pay taxes and municipal fees using Bitcoin, Ethereum, and stablecoins USDT and USDC.
Mayor of Panama City, Mayer Mizrachi, announced the city council’s decision to allow citizens to pay taxes, fees, fines, and permits using cryptocurrency. City residents will be able to settle payments with the municipality using BTC, ETH, USDT, and USDC.
To implement this initiative, the city partnered with a bank that will instantly convert the received digital assets into U.S. dollars. This approach allows the city to comply with legal requirements to accept payments in dollars, while also integrating modern technology into its financial system.
Mizrachi noted that the previous administration of Panama City attempted to introduce similar measures but encountered legal obstacles. The current decision bypassed the need to change legislation thanks to cooperation with financial institutions. The mayor expressed confidence that the initiative would attract investment and increase transparency in the city’s financial operations.
In 2022, the National Assembly of Panama passed a law allowing the use of crypto for tax and commercial payments, but it was later vetoed by the country’s president.
Panama City joins a growing number of regions accepting cryptocurrency for public services. In 2022, the municipality of Mendoza in Argentina began accepting dollar-pegged stablecoins for tax payments. In 2023, authorities in Liechtenstein and the government of Lugano, Switzerland, also allowed residents to pay city fees using Bitcoin. Crypto tax payments are also available in Detroit and the state of Ohio.
