Panama City to Accept Crypto for Taxes and Fees

Panama City Rolls Out Crypto Tax Payments

Panama's capital is taking a bold step into the future of finance. On April 15, Mayor Mayer Mizrachi announced that Panama City will begin accepting cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), USDC, and Tether (USDT)—for taxes, municipal fees, permits, and even bus tickets. Once the crypto-to-fiat conversion rails are in place, residents will be able to pay for public services using their digital wallets. This move puts Panama City in the company of forward-thinking jurisdictions that are actively integrating crypto into public finance, aiming to modernize payment infrastructure and increase flexibility for citizens. The local government will immediately convert any crypto received into U.S. dollars, eliminating the need for new legislation and sidestepping prior legal hurdles.

“The local government partnered with a bank that will immediately convert any digital assets received into US dollars,” said Mizrachi, adding that this method allows compliance with existing monetary frameworks while embracing innovation.

A Global Trend: Crypto-Friendly Municipalities

Panama City isn’t alone. More governments around the world are opening up to crypto-based payments:

• In the United States, the state of Colorado began accepting crypto for taxes in 2022, using a similar instant conversion strategy.

• Lugano, Switzerland, known for its Bitcoin-forward stance, allows residents to pay city fees and taxes in BTC.

• Vancouver, Canada, voted in 2024 to explore becoming a Bitcoin-friendly city, with plans to integrate BTC into public financial systems.

• And just days ago, North Carolina Representative Neal Jackson introduced the “Digital Asset Freedom Act”, a bill to recognize crypto as official payment for taxes.

These actions reflect a growing belief that cryptocurrencies can help modernize public services, create greater financial inclusivity, and hedge public treasuries against inflation by potentially holding digital reserves.

Panama City Eyes the Crypto Economy

By enabling blockchain-based tax payments, Panama City not only taps into a growing demographic of crypto users but also signals its intent to attract investment and innovation. It's a strategic shift toward economic modernization with minimal risk, thanks to the automatic conversion process that keeps the city’s budget in USD. Panama's broader national stance on crypto has been in development over recent years, and this municipal initiative could serve as a testbed for nationwide adoption. 

As Panama City joins the global movement toward pro-crypto governance, the message is clear: crypto isn’t just a speculative asset anymore—it’s becoming a civic utility.