On April 16, 2025, Panama City Mayor Mayer Mizrachi Matalon announced that the city council voted to accept cryptocurrencies such as Bitcoin, Ethereum, USD Coin, and Tether for municipal payments, including taxes, fees, tickets, and permits.

This move allows residents to engage with their local government through cryptocurrency transactions, marking a significant step in Bitcoin adoption in Latin America.

The initial rollout includes widely adopted cryptocurrencies, although there is currently no confirmation on whether additional digital assets will be accepted in the future.

This initiative aligns with a growing trend in other regions, as countries like El Salvador and the Central African Republic have adopted Bitcoin as legal tender.

This initiative is driven by local municipal law, which enables the acceptance of cryptocurrencies without requiring national legislative action.

The Mayor's Office confirmed the arrangement through official channels, indicating that the authorized bank will facilitate cryptocurrency transactions for municipal services.

Mizrachi emphasized that previous administrations struggled to establish a legal framework for cryptocurrency payments, but this initiative allows for seamless integration of crypto into the economy and government operations without the need for new legislation.

Several U.S. cities, including Detroit and Colorado, have recently started accepting cryptocurrencies for municipal payments, highlighting a broader trend of municipalities exploring digital payments.

The move reflects a global trend towards cryptocurrency acceptance, influenced by political shifts such as the election of pro-crypto U.S. President Donald Trump in 2024.

To comply with legal requirements mandating public institutions to accept payments in U.S. dollars, the city partnered with a bank that will convert cryptocurrency payments into USD instantly.

Mizrachi believes this model can serve as a blueprint for other governments looking to incorporate cryptocurrencies without extensive legislative changes.

Panama City's approach contrasts with earlier attempts that faced challenges and setbacks, showcasing a viable path for local governments to adapt to digital asset integration.