- Panama City Mayor proposes Bitcoin payments for Panama Canal tolls, requiring federal and US government approval.
- City pilot allows BTC tax payments instantly converted to USD, building bank support for crypto.
Mayer Mizrachi, the mayor of Panama City, spoke about Bitcoin’s impact on his nation at a recent conference. He outlined steps that local governments can take to weave Bitcoin into daily life. In particular, he suggested that Panama could accept BTC as payment for using the Panama Canal.
Mizrachi explained that, despite past setbacks, his office has pushed for meaningful change. He pointed out that Panama relies on the US dollar, yet cities can still lay the groundwork for broader adoption. For instance, his administration created a roadmap showing how municipal offices can begin using Bitcoin. Consequently, he hopes the national government will copy these efforts once they prove effective.
Over the last few years, Panama made several attempts to reform its Bitcoin policy, but each time the plans stalled. However, Mizrachi insisted that cities can move forward on their own. He noted that Panama City accounts for about 70 percent of the country’s economic output. Therefore, innovations at the municipal level tend to draw attention across the nation.
Initially, his plan focused on allowing residents to pay city taxes in BTC. However, the city had to convert all incoming Bitcoin into US dollars immediately. This process forced major banks to handle Bitcoin conversions, which in turn built momentum in the local financial sector. Meanwhile, Mizrachi has shared his experiences with other mayors in Central America.
He believes small pilot projects can ripple outward
Still, Mizrachi admitted that lasting change will require more political backing. He said that using Bitcoin to pay for canal tolls would involve federal and international approval. In other words, he must convince not only Panama’s government but also the United States. Without such buy-in, offering BTC for canal fees remains a theoretical idea.
“What we created was a roadmap for how cities can embrace Bitcoin regardless of national law. You can build the building blocks, so the central government can copy what you’re doing after it’s proven. 70% of [Panama’s] GDP is in my city. Whatever my city does, it makes waves around the country,” Mizrachi claimed.
Mizrachi praised El Salvador’s president, Nayib Bukele, for his country’s acceptance of Bitcoin. He suggested that Panama could begin building a strategic Bitcoin reserve to back its own digital initiatives. Nonetheless, he stressed that the nation needs to develop a decentralized finance network first. Only then could local businesses and citizens use BTC with confidence.
To the moon #BTC pic.twitter.com/B1wqqW7hOX
— Mayer Mizrachi (@Mayer) May 30, 2025
He also said that Panama City’s pilot projects serve as proof of concept. If small acts of adoption work at the local level, larger governmental bodies might follow suit. Therefore, he sees municipal efforts as critical first steps.
Overall, his message was clear: cities do not need to wait for national law to change. Instead, local governments can create tangible examples of Bitcoin use. In doing so, they give higher authorities a tested model to follow. Slowly but steadily, Panama City’s mayor hopes his city’s work will chart a new path for the country’s economic future.
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