The Panama City Council has approved the use of cryptocurrencies for tax payments, improving financial accessibility for both local and international residents.
Approval for Bitcoin Tax Payments
The city has initiated the use of Bitcoin (BTC) for tax payments through a partnership with Towertrust Inc. and Towerbank International Inc. Payments in Bitcoin will be quickly converted to dollars, maintaining the existing tax system. Residents have the option to use this method voluntarily while still having access to traditional payment methods.
Inclusion of Ethereum in Payment System
Panama City has also included Ethereum (ETH) as a supported cryptocurrency. Payments made in Ethereum will be instantly converted to dollars, protecting against volatility. This enhances the city’s appeal as a modern destination for international taxpayers.
Stablecoins USDC and USDT for Tax Payments
City authorities have implemented USDC and USDT for tax and fee payments. These stablecoins offer a stable exchange rate as they are pegged to the U.S. dollar. Towerbank will process these transactions by instantly converting stablecoins into dollars, ensuring smooth financial operations.
The introduction of cryptocurrencies for tax payments signals a modernization of financial systems in Panama City, setting a precedent for other municipalities in Latin America. This initiative enhances accessibility for taxpayers, making systems more flexible and adaptable.
