In a Thursday announcement, the Panama City Council has officially unveiled that is has approved the acceptance of Bitcoin (BTC) and other digital assets for municipal services including tax, fees and permits.
Panama City Council Votes To Embrace Bitcoin And Crypto
Mayor Mayer Mizrachi announced the decision on X (formerly Twitter), highlighting the council’s Bitcoin vote as a pivotal moment for the city. “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, and USDT,” Mizrachi stated.
This decision represents a major shift in how residents can interact with their local government, allowing for seamless transactions using Bitcoin and digital currencies for everyday expenses.
While announcing this development, the mayor also emphasized that this achievement was realized without the need for new Bitcoin and crypto legislation, a challenge that had previously hindered similar initiatives in the country.
“Prior administrations tried to push a bill in the senate to make this possible, but we found a simple way to do it without new legislation,” The Panama City mayor further explained.
Banking Agreement For Cryptocurrency Transactions
The approach involves partnering with a bank that will process the transactions, receiving payments in cryptocurrencies and converting them to US dollars on the spot.
This partnership not only facilitates the acceptance of digital currencies but also ensures compliance with existing legal frameworks that mandate public institutions to receive funds in dollars. “This allows for the free flow of crypto in the entire economy and entire government,” Mizrachi added.
The Panama City Mayor’s Office further confirmed the news through its official social media channels, stating, “We will soon become the first public institution in the country to allow payment for municipal services in cryptocurrency, through an authorized bank that will be responsible for converting the proceeds into dollars for the Mayor’s Office.”
Looking ahead, Mayor Mizrachi revealed that the agreement with the banking partner is set to be finalized next week. “The deal’s being signed next week at the Blockchain conference in Panama. Look out for the signing of the deal next week,” he noted.
When writing, BTC trades at $84,825, up nearly 5% in the weekly time frame after a sharp decline toward 75,700 last week. As of now, the market’s leading cryptocurrency is 22% below its all-time high reached back in January of this year.
Featured image from DALL-E, chart from TradingView.com
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