Panama City Approves Crypto Payments for Public Services

On April 16, 2025, Panama City took a groundbreaking step by voting to accept cryptocurrency payments for public services, including taxes, fees, tickets, and permits. This landmark decision positions Panama City as a trailblazer in the integration of digital currencies into government operations, making it one of the first municipalities globally to adopt such a system. Residents can now conveniently pay using Bitcoin (BTC), Ether (ETH), and stablecoins like USDT and USDC. A partnership with a local bank will facilitate the conversion of these cryptocurrency payments into U.S. dollars at the time of the transaction, ensuring compliance with legal requirements for government revenue.

• Panama City becomes a pioneer in accepting crypto payments for public services.
• Residents can use Bitcoin, Ether, and stablecoins for various government fees.
• The initiative aligns with Panama's broader legislative efforts to regulate cryptocurrency.

The decision to embrace cryptocurrency payments reflects a growing trend among municipalities worldwide, following similar initiatives in cities like Miami and New York. Mayor Mayer Mizrachi Matalon emphasized that this initiative aims to integrate cryptocurrency into the broader economy and enhance government operations. This move is not just about modernizing payment methods; it also sets the stage for a comprehensive regulatory environment that could further bolster the digital economy in Panama.

Earlier in 2025, a draft bill was introduced in Panama’s National Assembly to legalize voluntary crypto payments and regulate the virtual asset industry. This includes the establishment of the National Council of Digital Assets (CONAD) to oversee crypto regulation. The approval of cryptocurrency payments for public services marks a significant advancement in the adoption of digital assets within government frameworks, facilitating modern payment methods and enhancing the overall efficiency of public service transactions.

The response to this initiative has been mixed. Traditional banks are cautiously optimistic, exploring partnerships with cryptocurrency platforms, while major exchanges view the decision as validation for digital currencies. Payment processors are preparing to integrate cryptocurrency options, and local businesses have expressed varied reactions regarding the volatility of cryptocurrencies. Regulatory agencies are closely monitoring the situation, emphasizing the need for clear guidelines to ensure consumer protection and financial stability.

Countries around the world are steadily advancing in the adoption of cryptocurrency payments, signaling a shift toward digital financial systems. In the United States, platforms like MoonPay are playing a key role by enabling seamless crypto-to-fiat transactions, contributing to broader accessibility and use of digital assets. Meanwhile, Russia is pushing forward with its own state-backed initiative—the digital ruble—designed to modernize its financial infrastructure and reduce dependency on foreign payment systems. These developments reflect a global momentum toward integrating cryptocurrencies into both public services and national economic strategies.

Public sentiment is also divided. Some residents are enthusiastic about the convenience and potential cost savings that crypto payments could bring, while others express concerns about security and the inherent volatility of digital currencies. As Panama City embarks on this new journey, the implications of this decision will likely resonate throughout the region and beyond.

Expert Opinion and Quotes

Anthony Pompliano, Co-founder of Morgan Creek Digital
“Panama City’s move to accept crypto for public services is a significant step towards mainstream adoption. It sets a precedent for other cities to follow.” - Source: Mitrade

Andreas Antonopoulos, Bitcoin Advocate and Author
“This decision by Panama City is a clear indication of the growing acceptance of cryptocurrencies in everyday transactions. It’s a win for the crypto community.” - Source: Mitrade

FAQs

What types of cryptocurrencies can residents use for payments in Panama City?
Residents can use Bitcoin (BTC), Ether (ETH), and stablecoins such as USDT and USDC for public service payments.

How will cryptocurrency payments be converted for government revenue?
A partnership with a local bank will facilitate the conversion of cryptocurrency payments into U.S. dollars at the time of the transaction.

What is the significance of Panama City’s decision to accept crypto payments?
This decision positions Panama City as a pioneer in the integration of digital currencies into government operations, setting a precedent for other municipalities worldwide.

What are the potential benefits of crypto payments for public services?
Crypto payments can enhance convenience, reduce transaction costs, and streamline government operations, making it easier for residents to pay for services.

How is the Panamanian government addressing regulatory concerns regarding cryptocurrency?
The government is working on a regulatory framework, including a draft bill to legalize voluntary crypto payments and establish the National Council of Digital Assets (CONAD) for oversight.