The Panama City council has approved a new measure allowing residents to pay for public services using cryptocurrency.
About the City Council's New Decision
The Panama City council voted to enact a new measure that allows residents to pay taxes, permits, and fines using cryptocurrency. This decision enables payments in Bitcoin, Ethereum, USD Coin, and Tether. A partner bank will convert the cryptocurrency into U.S. dollars at the time of payment, complying with legal requirements.
Benefits for Residents
The new system provides residents with an opportunity to utilize cryptocurrency for everyday transactions with the government while ensuring the city receives payments in its official currency. It also allows Panama's crypto economy to grow without requiring every institution to manage digital assets directly.
Comparison with Other Countries
This initiative differs from El Salvador's approach, which made Bitcoin legal tender in 2021. Panama's model is optional and focused on compatibility with existing financial systems. As Mayor Mayer Mizrachi noted, previous administrations attempted to push a bill for this, but the new approach proved simpler.
The introduction of cryptocurrency payment options in Panama City marks an important step for the development of the digital economy in the region and highlights the flexibility of financial systems.
