The Panama City Council has approved a regulation allowing citizens to pay for municipal services using cryptocurrencies. This move is seen as a significant step in the increasing use of cryptocurrencies in Latin America. The municipality aims to facilitate the use of BTC, ETH, USDC, and USDT for tax, fee, fine, and permit payments.
Payment with Cryptocurrency
Mayor Mayer Mizrachi announced the initiative on social media following its ratification. The announcement expressed that previous administrations had been working on legislative solutions in the Senate, but an alternative solution was found instead. Under this plan, cryptocurrency payments will be converted instantly into local currency via a bank.
Mayer Mizrachi: “The Panama City Council voted to become the first public institution to accept cryptocurrency payments. Citizens can now make tax, fee, fine, and permit payments using BTC, ETH, USDC, and USDT.”
This initiative indicates the local government’s adaptation to the cryptocurrency landscape, facilitating the use of technological innovations in citizens’ daily transactions.
Collaboration and Implementation Details
To implement this plan, collaboration with an authorized bank will be established. The bank will convert the received cryptocurrencies into local currency promptly, ensuring a regular and transparent revenue flow. This method is advantageous as it saves time by bypassing the lengthy legislative process.
According to information shared by municipal authorities, a collaboration agreement is expected to be finalized soon, with the process anticipated to become operational. The announcements emphasized that citizens will be able to access the municipality more conveniently in the digital environment thanks to this system.
Mayer Mizrachi: “Previous administrations tried to pass legislation in the Senate, but we opted for a more practical method.”
These statements reveal that the solution was designed to exploit legal loopholes effectively.
The implementation of this decision is viewed as a significant milestone in the local government’s digital transformation process. Allowing citizens to make payments using digital currencies could enhance transparency and ease of transactions. This development may also contribute to strengthening the technological infrastructure of public services.
