The Panama City Council – the capital of Panama – recently made a breakthrough decision by becoming the first government agency in the country to accept cryptocurrency payments. According to information from Mayer Mizrachi, a prominent technology expert in Panama, citizens in Panama City can now use popular cryptocurrencies such as BTC, ETH, USDC, and USDT to pay taxes, administrative fees, traffic fines, and apply for licenses.
Although current law requires government agencies to accept payments in US dollars (USD), the Panama City government has cleverly collaborated with a local bank to convert cryptocurrencies to USD in real-time. This mechanism allows the government to receive cryptocurrency payments without any legal changes, while still ensuring compliance with public financial regulations.
This move marks an important step in the strategy of modernizing public services and promoting blockchain technology application in the public sector. Accepting digital assets like BTC, ETH, USDC, and USDT not only provides convenience and flexibility for Panama's capital residents but also demonstrates the government's open stance towards DeFi and digital technologies.
Panama City's pioneering approach to cryptocurrency payments could create a precedent for other cities in Latin America and globally to explore similar implementation models.
