- Panama District will become the first public institution in Panama to accept cryptocurrency payments for services.
- The initiative was unanimously approved by the City Council, with a bank serving as intermediary to convert cryptocurrencies to dollars.
- Mayor Mizrachi believes this move will enable the free circulation of cryptocurrencies throughout the economy and government.
Mayer Mizrachi, mayor of the Panama District, revealed on Tuesday that his municipality will pioneer cryptocurrency acceptance for public services in Panama. The announcement follows a unanimous approval by the City Council to implement this alternative payment method. According to Mizrachi, the municipality has partnered with an authorized bank that will handle the conversion of cryptocurrency payments into dollars.
Bridging Traditional and Digital Finance
“My dear City Council has unanimously approved an initiative initiated by the Mayor’s Office, which will allow all citizens to pay their obligations and taxes in crypto,” Mizrachi explained during the announcement. The mayor emphasized that while the municipality will ultimately receive dollars, the system incorporates an intermediary that facilitates the cryptocurrency-to-dollar conversion.
The mayor noted that Panama, despite being recognized as Central America’s financial hub, had been falling behind in cryptocurrency adoption. “Legally, it’s simple: the Mayor’s Office receives dollars, but there’s an intermediary who receives the crypto, transforms it into dollars, and takes it to the Mayor’s Office,” he added, describing the straightforward mechanism behind the new payment option.
Implementation Timeline
Mizrachi indicated that an official announcement regarding the specific details of the cryptocurrency payment system will follow once the municipality finalizes its agreement with the partnering financial institution. The initiative represents a significant step toward mainstream cryptocurrency adoption in Panama’s public sector.
The mayor expressed optimism about the broader implications of this development, stating, “This allows for the free movement of cryptocurrencies throughout the economy and throughout government.” This progressive approach positions the Panama District at the forefront of digital currency integration in Central America’s governmental operations.
The cryptocurrency payment option will be implemented as an additional payment method, providing citizens with greater flexibility when fulfilling their municipal obligations without replacing traditional payment systems.
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