Panama City to Accept Cryptocurrency Payments for Taxes and Municipal Fees
The capital city of Panama, Panama City, will begin accepting cryptocurrency payments for taxes and municipal fees, including bus tickets and various permits, joining the ranks of cities worldwide that accept such payment methods.
Mayor Mayer Mizrachi of Panama City stated on the social media platform X on Wednesday that the Panama City Council has passed a resolution to become the first public agency in the country to accept cryptocurrency payments. Citizens will be able to pay for multiple public service fees using Bitcoin (BTC), Ethereum (ETH), and stablecoins USDC and USDT.
Mizrachi also mentioned that previous administrations had attempted to promote similar legislation but failed to overcome the requirement that government agencies must collect payments in U.S. dollars. Therefore, the current administration has partnered with a bank that will be responsible for receiving cryptocurrencies and converting them into U.S. dollars, allowing the government to accept cryptocurrencies without amending existing laws.
Currently, several cities and regions around the world accept cryptocurrency for tax payments or are exploring the application of blockchain in government spending. For example, the state of Colorado in the United States began accepting cryptocurrency for tax payments in September 2022. The city of Lugano in Switzerland announced in December 2023 that it would allow tax payments using Bitcoin.
