The capital of Panama is now accepting cryptocurrency payments for taxes and certain municipal services.
Panama City Mayor Mayer Mizrachi wrote on social media that Bitcoin (BTC) and Ethereum (ETH) can now be used by citizens to pay their taxes and for some services.
Specifically, residents of Panama City can pay their taxes, parking tickets, permits, and other fees with Bitcoin and Ethereum, as well as stablecoins Circle (USDC) and Tether (USDT).
“Prior administrations tried to push a bill in the senate to make this possible, but we found a simple way to do it without new legislation,” wrote the mayor in an X post, adding “Legally public institutions must receive funds in $, so we partner with a bank that will take care of the transaction receiving in crypto and convert on spot to $.”
Mayor Mizrachi trumpeted the move to accept cryptocurrency payments, saying it “allows for the free flow of crypto in the entire economy and entire government.”
While many municipalities and governments around the world are studying the feasibility of accepting cryptocurrency payments, Panama City is one of the few jurisdictions to do so.
Bitcoin, the largest cryptocurrency by market capitalization, is currently trading at just under $85,000 U.S.
