Panama City Embraces Crypto: Pay Your Taxes with Bitcoin and More!

Panama’s capital to accept crypto for taxes, municipal fees

Starting from April 15th, the capital city of Panama, as declared by Mayor Mayer Mizrachi, will now accept cryptocurrency transactions for various payments such as taxes, municipal fees (including bus fares and permits). This makes Panama City one of the expanding number of locations worldwide that have decided to use cryptocurrencies in their payment systems.

Panama City plans to start accepting payments in Bitcoin (BTC), Ether (ETH), Circle’s USDC (USDC), and Tether’s USDt (USDT) once the infrastructure for converting cryptocurrency to traditional currency is set up, as shared by Mizrachi on the X platform.

Previous governments have tried to pass similar laws, yet they couldn’t get past the conditions that needed the local authority to agree to receive funds in U.S. currency. (Mizrachi)

In simple terms, as stated in translation, the mayor of Panama City mentioned that their local administration is collaborating with a bank which instantly changes any cryptocurrencies they receive into U.S. dollars. This setup allows them to accept cryptocurrency transactions without the need for new laws or regulations.

City of Panama becomes part of an expanding roster of cities and states worldwide, embracing cryptocurrencies as a means for tax payments. They are delving into the strategy of amassing Bitcoins as a safeguard against inflation in their public funds, and they are also implementing crypto-friendly policies to lure investments.

Municipalities and states embrace digital assets

Many locations worldwide, including cities and regions, currently welcome cryptocurrencies as a means of tax payment or are investigating different applications of blockchain technology to manage government expenditure.

In September 2022, Colorado, a U.S. state, began accepting cryptocurrency payments for taxes. Similar to Panama City’s announcement, Colorado swiftly exchanges the received crypto into traditional fiat currency.

By December 2023, Lugano, Switzerland, made headlines as a Bitcoin-friendly city when they revealed residents could pay their city taxes and fees using Bitcoin, thereby solidifying its global recognition as a pioneer in Bitcoin adoption.

In December 2024, the municipal governing body of Vancouver, Canada, made a decision to adopt a welcoming stance towards Bitcoin. Under this decision, the local administration of Vancouver plans to investigate and potentially incorporate Bitcoin into their existing financial infrastructure, such as for tax payments.

Legislator Neal Jackson from North Carolina put forward a bill called the “North Carolina Digital Asset Freedom Act” on April 10th. This bill, if approved, would acknowledge cryptocurrencies as a valid method for settling tax payments.

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2025-04-17 01:37