Panama City votes to approve crypto payments for public services

Panama City has approved a measure that allows residents to use cryptocurrency to pay for public services.

The city council voted to enable payments for services such as taxes, permits and penalties on Bitcoin (BTC), Ethereum (ETH), USDcoin (USDC), and Tether (USDT).

Partner banks convert crypto into US dollars upon payment and comply with legal requirements without passing new laws.

“The previous administrations tried to push the bill in the Senate to make this possible, but they found an easy way to do it without a new legislation,” Mayor Mizrachi, Panama City, posted. “Legal public agencies must receive funds in $, so they will manage transactions received in crypto and partner with banks that convert them on the spot to $, which will allow for a free flow of crypto across the economy and across the government.”

The new system will ensure that the city is still being paid in official currency, while providing a way for residents to use crypto for their daily transactions with the government.

It also allows for the growth of Panama’s crypto economy economy rooms without requiring all institutions to directly manage their digital assets.

This step is different from the El Salvador approach in 2021 when Bitcoin acquired legal currency. The Panama model is optional and focuses on compatibility with existing financial systems.

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