Panama City to Accept Crypto for Payments in 2025
Key Takeaways
Panama City now accepts cryptocurrencies for municipal payments. Residents can pay taxes, fees, fines, and permits using Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT). Payments are automatically converted into US dollars. This approach allows the city to bypass legal hurdles while aligning with the global trend toward crypto adoption.
What Exactly Is Changing in Panama City?
Starting in April 2025, Panama City will allow municipal payments using four leading cryptocurrencies: BTC, ETH, USDC, and USDT. This applies to:
- Tax payments
- Administrative fees
- Fines
- Permits and licences
The cryptocurrencies will not be held directly by the city. Instead, they will be immediately converted into US dollars via partner banks. This avoids the risk of price volatility and keeps the city administration within the existing financial system.
Why This Move?
According to Mayor Mizrachi Matalon, national legislation on crypto regulation is delayed. To make progress nonetheless, the city is relying on so-called “crypto-to-fiat rails.” This means cryptocurrencies are automatically converted into fiat currency (in this case, US dollars) during the payment process. This avoids bureaucratic barriers without sacrificing technological innovation.
International Models and Developments
Panama is not alone in this initiative. Cities and countries around the world are increasingly adopting cryptocurrencies in public payment systems:
- Lugano (Switzerland): Since December 2023, the city has accepted BTC and USDT for taxes and fees.
- Vancouver (Canada): Integrated BTC payments into the municipal financial system starting December 2024.
- Colorado and North Carolina (USA): Piloting crypto payments at the state level.
- Vanuatu: Allows Bitcoin payments for immigration and citizenship applications.
However, there have also been setbacks: El Salvador, once a pioneer in Bitcoin adoption, abolished BTC tax payments in early 2025.
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What Does This Mean for You?
If you live or do business in Panama City, you’ll soon be able to pay using cryptocurrencies with ease. This saves time, reduces the hassle of international transfers, and demonstrates how digital assets can be used in everyday life. Important: You’ll need a wallet containing BTC, ETH, USDC, or USDT – the city takes care of the rest.
Our Assessment
Panama City is taking a pragmatic approach: instead of waiting for new legislation, the city is leveraging existing technical solutions to enable crypto payments. The automatic conversion into US dollars protects both the administration and residents from currency volatility. For crypto users, this is another step toward the everyday usability of digital currencies. At the same time, it’s clear that stablecoins like USDC and USDT are gaining importance, especially in the public sector.
The development in Panama sends a strong signal: cryptocurrencies are no longer just speculative assets. They are increasingly being accepted as a means of payment – even by government authorities.
Sources
- Panama City Mayor Office
- Vancouver City Council Reports
- Government of Vanuatu – Immigration Services
- Official Statements from Lugano Municipality
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $93,739.00 |
| 24h % | 1.42 % |
| 7d % | 10.87 % |
| 30d % | 6.62 % |
| 60d % | -2.16 % |
| 1y % | 46.74 % |
| Market Cap | $1,861,523,611,840.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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