A new move from Panama's capital is causing a stir in the cryptocurrency community: Panama City has officially accepted Bitcoin, Ethereum, and stablecoins for payment of public services, including taxes, licenses, fees, and fines.
This is not just a major step for Panama but also a strong signal for the application of crypto in real life, especially as more and more countries and regions around the world discuss the legal role of digital assets.
Specifically, what types of crypto will Panama City allow for payments?
According to the latest announcement from Mayor #Panama City – Mr. Mayer Mizrachi – residents of the city can now use 4 types of digital assets to directly pay for public services, including:
Bitcoin ($BTC )
Ethereum ($ETH )
(stablecoin pegged to USD issued by Circle)
Tether (USDT) – the world's most popular stablecoin
Payable items include city taxes, licensing fees, fines, and other administrative fees.
No need for new laws – Panama City takes a legal shortcut
A notable point in this policy is: Panama City does not need to pass new legislation to implement the acceptance of crypto payments.
According to Mr. Mizrachi, previous governments have attempted to promote related legislation in the Senate but were unsuccessful. However, his team has 'found a simple way to realize this without needing to change the law.'
Specifically, the city will collaborate with banks capable of accepting digital assets and converting them into fiat, ensuring that accounting and financial processing still comply with the standards of the traditional financial system.
Why is this an important step?
Panama City is the largest economic and financial center in Panama. The city's public acceptance of crypto for utility payments could yield several positive outcomes:
Increasing the reliability and legitimizing the use of digital assets in everyday life
Promoting the fintech and blockchain industry in the Latin American region, especially in the public payment sector
Attracting the international crypto community, including startups, investors, and those who prefer to live in a technology-friendly decentralized environment
Additionally, this is a signal that the scale of crypto adoption is gradually shifting from 'experimentation' to practicality, from small countries like El Salvador to central cities like Panama City.
Some countries have gone ahead, and Panama City is joining the fray
Before Panama, El Salvador became the first country in the world to recognize Bitcoin as legal tender in 2021. Shortly after, the Central African Republic took a similar step.
In Switzerland, many areas have accepted Bitcoin for certain public services, and island nations like Fiji and Tonga are considering recognizing digital assets as an official means of payment.
Panama City's participation in this trend shows: governments are increasingly recognizing the practical value of crypto, not only in investment but also in public payment infrastructure.
Is the central government of Panama still cautious?
Although Panama City has made a groundbreaking step, the central government of Panama has not yet fully 'opened the door' to crypto. In 2022, President Laurentino Cortizo rejected part of a bill concerning Bitcoin and decentralized autonomous organizations (DAOs), stating that the bill was not suitable for the current financial system.
However, with Panama's capital proactively leading and demonstrating a flexible approach – accepting crypto while ensuring conversion to fiat through banks – this could set a precedent for other regions in the country to learn from and adjust their policies more appropriately in the future.
What should Binance users and the crypto market pay attention to?
This move from Panama City could present significant opportunities for Binance users and the entire crypto ecosystem:
Stablecoins like USDT and USDC – which are very popular on Binance – now have an additional practical usage channel beyond exchanges, enhancing their utility and long-term value.
Traders, developers, and Web3 projects may view Panama City as a new 'friendly base' in the Latin American region, especially in the context of other jurisdictions tightening regulations.
At the same time, this is also a reminder that Binance and users should closely monitor local policy changes – as each city or state may implement its own direction even if the country does not have clear laws.
Risk warning
Although news about Panama City may be a positive sign for the future of cryptocurrency, investing in and using crypto still carries risks related to legality, price volatility, and policy changes.
This article is not intended as investment advice. Users should conduct thorough research and assess risks before making decisions. Crypto is not suitable for everyone and is not guaranteed like traditional forms of assets.
