- Panama City becomes the first Latin American capital to accept crypto for government payments.
- Citizens can pay taxes, permits, and fines using BTC, ETH, USDC, and USDT.
- The move sparked a market rally, with Bitcoin price and trading volumes surging globally.
Panama City’s approval of crypto payments marks a historic moment in governmental financial policy. Citizens can now pay a range of municipal dues—from taxes to permits—using major cryptocurrencies like Bitcoin and Ethereum.
The market reacted swiftly. Bitcoin’s price jumped 3.5% to $68,321 within an hour, accompanied by a 20% spike in BTC/USD trading volume. On-chain metrics showed increased activity, with a 10% rise in unique addresses transacting.
Bitcoin Breaks Barriers: How Panama City’s Crypto Move Reshaped the Market
Panama City’s decision to accept cryptocurrency payments for government fees marks a bold step toward integrating decentralized finance with public services. While national regulation in Panama has faced roadblocks, including a Supreme Court ruling against a 2021 virtual assets bill, this municipal move bypasses legislative gridlock. This decision brings crypto to the public sphere.
Mayor Mayer Mizrachi’s leadership played a pivotal role in pushing this forward. By gaining approval from the city council, he positioned Panama City as a trailblazer in crypto adoption. This not only empowers residents with new payment options but also sets a precedent. It shows how local governments can embrace innovation independently of national policy.
Crypto markets immediately reflected this news. Bitcoin experienced a breakout above a key resistance level of $67,000, with strong buy-side pressure on exchanges like Binance and Coinbase. Trading activity intensified globally. Bitcoin trading volume reached $45 billion. Other major currencies like EUR and JPY showed parallel demand increases.
The news had a ripple effect on altcoins as well. Ethereum and Litecoin both posted price and volume gains. Investors sought exposure to cryptocurrencies beyond Bitcoin. The increased market depth and activity suggest that Panama City’s adoption is not just symbolic. It’s influencing global sentiment and potentially paving the way for broader institutional use.
Panama City’s move to accept crypto for public services is more than a local innovation—it’s a global signal. As more governments explore digital currencies, the momentum for mainstream crypto adoption is only gaining strength.
“First they ignore you, then they laugh at you, then they fight you, then you win.” — Mahatma Gandhi
