Panama City to Accept Crypto for Public Services
Panama City has approved cryptocurrency payments for public services, becoming the first government institution in Panama to do so. The city council unanimously voted to accept Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT) for taxes, fees, permits, and municipal services like bus tickets.
A local bank partner will instantly convert crypto payments to U.S. dollars at the transaction point, complying with Panama’s requirement that public institutions receive funds in USD.
Unlike prior failed attempts to pass crypto legislation nationally, this initiative bypasses the need for new laws by leveraging existing banking partnerships.
The move aligns with Panama’s proposed 2025 regulatory framework for digital assets and follows global trends, such as crypto tax payments in Colorado (U.S.) and Lugano (Switzerland).
Mayor Mayer Mizrachi emphasized that the policy enables crypto’s free flow within Panama’s economy while maintaining legal compliance. The decision positions Panama City as a regional leader in fintech innovation.
Every transaction made with crypto is recorded on a tamper-proof blockchain ledger, making public spending and service delivery more transparent. This openness helps build trust between citizens and government, as individuals can independently verify transactions and claims made by public authorities.
Crypto payments can streamline bureaucratic processes, reducing paperwork and manual reconciliation. Automation and secure digital records speed up service delivery and lower administrative costs, resulting in faster, more reliable interactions for citizens.
Blockchain technology encrypts and decentralizes personal data, protecting sensitive information from unauthorized access and cyberattacks. This is especially important for services involving identity verification, healthcare, and land registries.
With blockchain, every payment and transaction is traceable, ensuring that public funds are used appropriately. This reduces opportunities for corruption and misuse, giving citizens confidence that their taxes and fees are managed responsibly.
Using crypto for public services can modernize documentation and payment processes, reducing the need for physical paperwork and making it easier for citizens to pay taxes, fees, or access government services from anywhere.
Blockchain’s decentralized nature reduces the risk of centralized corruption and gives citizens more control over their data and transactions. This shift can empower individuals and communities in their interactions with public institutions.
Blockchain enables new approaches to issues like secure digital voting, efficient welfare distribution, and digital identity management, leading to fairer and more inclusive public services.
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