Panama City Just Made a Radical Move—and It’s All in Crypto

A quiet crypto revolution is brewing in Central America—and Panama City is leading the charge.

In a surprise announcement that’s shaking up financial systems worldwide, Panama City has officially approved Bitcoin, Ethereum, USDC, and USDT for paying taxes, permits, tickets, and other city-related fees. No future roadmap. No multi-phase rollout. It’s happening now.

The city’s mayor, Mizrachi Matalon, dropped the bombshell in an X post on April 15, saying residents will be able to pay entirely in crypto. This move makes Panama’s capital one of the few global jurisdictions to implement crypto payments on such a scale, and do it without waiting for national legislation.

How Panama Is Skipping the Red Tape

Unlike other regions tangled in legislative limbo, Panama City isn’t waiting for a green light from national lawmakers. Instead, it’s using crypto-to-fiat rails via partner banks to instantly convert payments into U.S. dollars.

In other words, the city gets Fiat. Citizens pay in crypto. Everyone wins.

This isn’t just a workaround—it’s a statement. The mayor made it clear: previous administrations stalled, but this one is forging ahead. And while some may see it as a temporary fix, others are calling it a template for real-world crypto adoption without bureaucracy dragging it down.

Who Else Is Doing This?

Panama isn’t alone—but it is bold.

The move puts it in league with other crypto-forward cities like Lugano in Switzerland, which launched Bitcoin and USDT tax payments back in 2023. In 2024, Vancouver followed suit, integrating BTC for public services.

Even parts of the United States, such as Colorado and North Carolina, have explored similar initiatives, though often limited to experimental phases or select payments.

Meanwhile, Vanuatu lets you pay for citizenship using Bitcoin—a power move of its own.

However, not every story is one of progress. El Salvador, the first country to adopt Bitcoin as legal tender, recently scaled back its Bitcoin-for-tax policy in early 2025, casting doubts on the long-term sustainability of state-level crypto adoption.

Why This Time Feels Different

Unlike some previous implementations, Panama’s strategy doesn’t rely on trust in volatile token valuations or future tech promises. By converting instantly to USD, the city sidesteps the risk of price fluctuations and wallet mismanagement—two of the biggest hurdles for government crypto use.

More importantly, it democratizes access. With support for BTC, ETH, USDC, and USDT, the city taps into both the crypto-native community and more risk-averse users who prefer stablecoins.

And with no need for new laws, this playbook could be replicated in any forward-thinking city or municipality worldwide.

What This Means for the Future

This is more than a tax policy—it’s a shift in public infrastructure. It hints at a future where crypto isn’t just for speculation—it’s for parking fines, business permits, and everyday interactions with the government.

Sure, some countries are pulling back. But Panama City is stepping forward—and doing it with speed, clarity, and purpose.

For crypto advocates, it’s validation. For sceptics, it’s a challenge. And for the world? It just might be the start of a new standard for how cities engage with money in the digital age.