Panama City Council Embraces Cryptocurrency for Municipal Payments
In a groundbreaking move, the Panama City Council announced on Thursday its official approval to accept Bitcoin (BTC) and other digital assets for various municipal services, including taxes, fees, and permits. This decision marks a significant step forward in integrating cryptocurrency into governmental operations, enhancing the convenience and efficiency of local transactions.
Major Shift: Bitcoin and Cryptocurrencies Welcomed by Panama City
Mayor Mayer Mizrachi took to X (formerly known as Twitter) to share this historic development, underscoring the council’s decision as transformative. “Panama City is now the first government institution to accept cryptocurrency for payments, allowing citizens to use BTC, ETH, USDC, and USDT for taxes, fees, and permits,” stated Mizrachi. This initiative introduces a seamless, modern method for residents to engage with their local government using digital currencies for everyday transactions.
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This progressive measure was accomplished without the need for new legislation surrounding Bitcoin and cryptocurrency, a hurdle that had previously stalled similar efforts in the country. “While past administrations sought legislative change, we found a straightforward solution,” Mizrachi explained, highlighting the innovation behind the council’s decision.
Innovative Banking Partnership Facilitates Crypto Transactions
The strategy involves collaborating with a banking partner to handle cryptocurrency transactions. The bank will receive payments in digital currencies and instantly convert them into US dollars, ensuring compliance with existing legal requirements that demand public institutions to conduct business in the official currency. “This approach enables the fluid integration of cryptocurrency within the economy and government operations,” Mizrachi added.
Further confirming the development, the Panama City Mayor’s Office announced via its official social media channels, “We will soon become the first public institution in the country to allow cryptocurrency payments for municipal services through a bank responsible for converting these payments into dollars.”
Looking ahead, Mayor Mizrachi disclosed that the agreement with the banking institution is expected to be finalized soon. “The deal will be signed next week at the Blockchain conference in Panama,” he noted, inviting the public to watch for this pivotal moment.
Bitcoin Market Insights
In market developments, Bitcoin is currently consolidating above the $80,000 mark, according to the latest charts. At the time of writing, BTC is trading around $84,825, reflecting a nearly 5% increase over the past week following a recent dip to approximately $75,700. Despite this growth, Bitcoin remains 22% below its all-time high recorded in January of this year.
With these changes, Panama City is setting a precedent for other government entities, showcasing how digital currencies can be integrated into public systems, potentially paving the way for broader adoption and acceptance.
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