Panama authorizes tax payments and municipal services with Bitcoin and Ether
-
Payments will be intermediated by a bank, which will convert cryptocurrencies into dollars.
-
“The Mecca of the Finance of Central America was staying behind,” said Mayor Mizrachi.
The mayor of the city of Panama, Mayer Mizrachi, recently confirmed that residents will be able to pay “taxes, fines and permits” using multiple cryptoactive ones, including Bitcoin (BTC) and Ethher (ETH, the cryptocurrency of the Ethereum Network).
“My municipal council unanimously approved an initiative promoted by the Mayor’s Office, which will allow citizens to pay their obligations and contributions in crypto,” said Mizrachi, who also stressed that “the financial mecca of Central America was staying behind.”
The mayor detailed what the process will be like: «It is very simple. The Mayor’s Office receives dollars, but There is an intermediary, a bank, which accepts the crypts, makes them dollars and transfers money to the mayor’s office. So we will formally announce when we sign with said bank ». In addition, the official explained that citizens will be able to pay their taxes and services using cryptocurrencies such as BTC, ETH, USDC and USDT.
In another post, the official explained that the association with the bank will allow implementing the measure No need to approve new legislation. He pointed out that previous administrations had already promoted a bill in the Senate with that objective.
It should be noted that, at the legislative level, Panama is taking new steps to boost cryptocurrencies. Recently, the alternate deputy Gabriel Solís presented to the National Assembly a draft law that seeks establish a clear regulatory framework for the use of digital assets in the country. This was reported by cryptootics.
In a conversation held in October 2024, Panamanian experts already highlighted the need to move towards a clear regulation of cryptocurrencies and tokenization as part of a strategy to modernize the local market. As explained by the specialist Alfredo Muñoz, the country must take advantage of the fact that this technology not only allows almost instantaneous liquidations, but also improves transparency, automates processes and facilitates access to personalized investments.
Payments with cryptocurrencies for taxes and services in the city of Panama could not only expedite municipal processes, but also attract investors and entrepreneurs in the sector, strengthening the local economy. This impact would be even greater if the country achieves significant advances in regulatory matters. We will have to be attentive.
