The Panama City Council has approved the use of Bitcoin and other cryptocurrencies for municipal services, allowing residents to pay taxes, fees, and permits. This initiative was achieved without new legislation and will involve a banking partnership for transaction processing and currency conversion. The Mayor anticipates finalising the banking agreement next week, marking a significant shift in payment methods for public services.
On a recent Thursday, the Panama City Council announced the acceptance of Bitcoin (BTC) and other digital assets for various municipal services, including taxes, fees, and permits. This is a significant development, marking the city’s initiative to enhance payment options for its residents. Mayor Mayer Mizrachi communicated this pivotal vote via social media, emphasising that payments can now be made in BTC, ETH, USDC, and USDT.
The mayor highlighted that this decision represents a major transformation in municipal payment systems, allowing residents to utilise cryptocurrencies for everyday financial transactions. Notably, this initiative was accomplished without necessitating new legislative measures, a point that Mizrachi underlined as a substantial achievement compared to previous unsuccessful attempts by different administrations.
This new system will function through a banking partnership that will manage transaction processes, converting cryptocurrency payments into US dollars instantly. This approach ensures compliance with existing regulations that stipulate municipal funds must be received in dollars, thereby facilitating increased crypto circulation within the local economy and government operations.
The Panama City Mayor’s Office confirmed through its official channels that it will soon be the first public institution in Panama to accept cryptocurrency for municipal services. This will be executed via a designated bank responsible for handling conversions into dollars for the Mayor’s Office. An announcement regarding the finalisation of this banking agreement is expected next week during a Blockchain conference in Panama.
At the time of writing, Bitcoin was valued at $84,825, experiencing a nearly 5% increase over the past week after a dip to $75,700 previously. Currently, BTC remains 22% below its record high achieved in January of this year.
