Panama City has become one of the first cities to accept cryptocurrencies for tax, fee, ticket, and permit payments.
Mayor Mayer Mizrachi Matalon announced via X platform that Bitcoin (BTC), Ethereum (ETH), USDC, and USDT will be accepted in the city's payment systems. This move was made possible through a partnership with a bank that facilitates the conversion of cryptocurrencies to US dollars, without the need for new legislation.
With this step, Panama has integrated cryptocurrencies into its economic system. Additionally, government institutions in the city are now enabling cryptocurrency payments for taxes and other government fees. While Panama officially uses the US dollar as its currency, this initiative could pave the way for wider use of digital currencies in municipal services.
Similar initiatives have been tested in cities like Detroit and Colorado, but the extent to which cryptocurrency has been adopted for tax payments remains uncertain..
