Panama City, Panama, is now accepting cryptocurrency payments for municipal services. Mayor Mayer Mizrachi Matalon announced on X that the city will accept Bitcoin, Ether, USDC, and USDT for taxes, fees, tickets, and permits.
To comply with Panamanian law, which requires government agencies to transact exclusively in U.S. dollars, a partner bank will convert the cryptocurrencies to USD for the city. This innovative approach allows Panama City to embrace digital assets without the need for new legislation.
Panama City joins a growing list of global cities exploring cryptocurrency adoption. Detroit, Michigan, is planning to accept crypto payments for city fees and taxes in mid-2025. Colorado started accepting cryptocurrency for tax payments in September 2022, though adoption has been limited.