Panama City will accept Bitcoin, Ethereum, and other popular forms of crypto as payment for public services. Residents will be able to pay their taxes, tickets, permits, and fees through cryptocurrency.
Panama District Mayor Mayer Mizrachi’s X post on the 16th of April said the city council passed a vote in favour of becoming the first institution of government to accept payments in crypto.
The city will partner with a bank to help convert the crypto into fiat currency, according to the X post, since Panama City only accepts the dollar as an official currency.
“Legally public institutions must receive funds in $, so we partner with a bank who will take care of the transaction receiving in crypto and convert on spot to $. This allows for the free flow of crypto in the entire economy and entire government.” said Mizrachi in the post.
This puts Panama City in an expanding circle of jurisdictions that accept cryptocurrency as a valid form of payment. The U.S. state of Colorado began accepting crypto payments for taxes in 2022. The city state of Lugano in Switzerland allows taxes and city fees to be paid in Bitcoin.
The move comes at a time when multiple countries around the world are trying to pass crypto-friendly regulations.
Panamanian President Laurentino Cortizo partially vetoed a bill in 2022 that would regulate Bitcoin and legalize decentralized autonomous organizations, according to Decrypt.
