- Mayor Mayer Mizrachi leads the crypto initiative in Panama City.
- Residents can pay taxes in BTC, ETH, USDC, USDT.
- City bypasses restrictions through bank-to-USD conversions.
This move places Panama City at the forefront of municipal crypto acceptance, leveraging bank conversions to comply with legal requirements, with potential to influence broader regulatory reforms.
Mayor Mayer Mizrachi has spearheaded the integration of cryptocurrencies into public payment systems. The city’s partnership with Towertrust Inc. and Towerbank International Inc. facilitates the instant conversion of crypto-to-USD, ensuring compliance with national law. Citizens can use Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT) for payments, marking a visionary step in public administration.
The initiative pivots around crypto acceptance for public services, ensuring legal compliance by converting crypto payments to USD upon acceptance. Mayor Mizrachi, noted for his tech entrepreneurship, advocates this innovative approach amid a backdrop of legal complexities that have previously stalled similar municipal efforts.
Immediate repercussions include greater accessibility for residents to settle dues, though market reactions remain muted due to the pre-arranged crypto-to-fiat protocol. This strategy circumvents possible socio-economic disruptions often associated with abrupt crypto shifts in public finance.
The political and regulatory landscape may be influenced as this local maneuver pressures national deliberations on cryptocurrency legislation. As more jurisdictions observe Panama City’s methodical integration, similar strategic adoptions might ensue, possibly prompting nationwide legislative clarity.
Expert perspectives suggest cautious optimism; compliance with national mandates through on-the-fly conversion mechanisms could attract international attention. Historical parallels, such as those with Lugano and Colorado, highlight muted market responses but emphasize potential associated with technological and regulatory innovation.
Panama City council has just voted in favor of becoming the first public institution of government to accept payments in Crypto. Citizens will now be able to pay taxes, fees, tickets and permits entirely in crypto starting with BTC, ETH, USDC, USDT.
– Mayer Mizrachi Matalon, Mayor, Panama City, CoinDesk