Bitcoin Crypto Payments to Transform Tax System in Panama City

Panama City is joining a growing list of places around the world that are opening their doors to cryptocurrency. On April 15, Mayor Mayer Mizrachi announced that it will soon begin accepting coin payments for local taxes and municipal services. This includes things like bus fares, business permits, and other municipal-related fees.

Bitcoin, Ethereum, and S tablecoin are Accepted

Once the system is ready, people will be able to pay using Bitcoin crypto , Ethereum (ETH) , USD Coin (USDC) , and Tether (USDT) . These payments won’t stay in this form for long—the munipalicity is working with a local bank to convert these online assets into US dollars right away. This approach helps Panama City stay within the law, as government payments in Panama must still be in US dollars.

Solving Past Roadblocks

Mayor Mizrachi explained that past governments tried to bring in similar systems, but they ran into legal problems because of that requirement. Now they can quickly convert cryptocurrency into dollars, the government has figured out a way to move ahead without requiring the change in any laws.

A Global Shift Toward Digital Money

This move allows Panama City to keep up with the global trend. All the governments, specifically of the municipal and state level, have started to accept Bitcoin crypto. These changes show that digital assets are gaining ground in public finance and not just in private investments.

In the United States, the state of Colorado began accepting crypto for tax payments back in 2022 . There, as in Panama City, the bitcoin crypto is quickly turned into traditional currency. Switzerland’s city of Lugano also adopted such transactions in 2023, in Canada , the Vancouver council voted in December 2024 to begin working towards the subject. They’re now exploring how Bitcoin crypto , could be used within their financial system.

Just last week, a new bill was introduced in North Carolina that could allow people to use this to pay their state taxes. If the bill gets approved, it will result in a huge step forward towards bitcoin crypto for public payments in the U.S.

Why Are Governments Embracing Cryptocurrency?

Governments are looking at digital currency for various reasons. One is fear of inflation. Digital currencies such as BTC are viewed by some as a hedge—a means of insulating value over the long term. Others are looking to attract industry startups and investment by demonstrating that they're receptive to new ideas.

Panama City Sets the Stage

Panama City could become a leader in Latin America when it comes to embracing digital finance. There’s no exact date for when digital assets payments will start, but plans are already in motion to build the tools needed to make it work.

With this move, Panama Municipal is signaling that it’s ready to take part in the digital economy. By blending bitcoin crypto payments with existing financial rules, it is showing how governments can modernize without breaking the system.