Key Takeaways
- Panama City now accepts Bitcoin, Ether, and stablecoins for paying taxes and fees.
- Crypto payments are converted to USD by a partner bank as government institutions require transactions in USD.
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Panama City residents can now pay taxes, fees, tickets, and permits using Bitcoin, Ether, and stablecoins following a city council vote this week, as announced by Mayor Mayer Mizrachi Matalon on X.
Matalon said that the approval makes the capital and largest city of Panama the first public institution in the country—and one of the first globally—to embrace digital assets for government transactions.
Initially, the initiative will focus on the two leading crypto assets alongside stablecoins USDT and USDC, he added.
🇵🇦 Panama City council has just voted in favor of becoming the first public institution of government to accept payments in Crypto.
Citizens will now be able to pay taxes, fees, tickets and permits entirely in crypto starting with BTC, ETH, USDC, USDT@APompliano @aantonop…
— Mayer Mizrachi (@Mayer) April 15, 2025
Panama’s mayor said this will be implemented through a partnership with a bank that converts crypto payments to dollars at the time of transaction, as public institutions are legally required to receive funds in dollars.
“This allows for the free flow of crypto in the entire economy and entire government,” Matalon said.
The move comes as Panama’s National Assembly considers broader legislation to establish a regulatory framework for crypto assets and promote the digital economy in the country.
Earlier this year, the Panamanian government unveiled a comprehensive draft bill aimed at legalizing voluntary crypto payments and regulating the virtual asset industry.
The proposed law would create oversight bodies, including the National Council of Digital Assets (CONAD), to coordinate the regulation and supervision of crypto assets in Panama.
The legislation also suggests establishing a legal framework for using crypto in commercial and civil transactions, sets compliance standards for Virtual Asset Service Providers (VASPs), and encourages the integration of blockchain technology into governance, digital identity systems, and smart contracts.
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