Panama City Adopta Bitcoin for the payment of municipal taxes

By Hannah Pérez

Taxpayers from the city of Panama will now be able to pay their tax obligations with four different cryptocurrencies, including BTC, ETH and USDT. The financial epicenter of Central America takes a step towards innovation.

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• Panama City embraces cryptocurrencies while moving towards financial innovation.
• Taxpayers will be able to pay their municipal taxes in Bitcoin and three other cryptocurrencies.
• Integration reinforces transparency in municipal financial management.
• It is part of a broader tendency to adopt cryptocurrencies globally.

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Panama binds to the nations of Central America that embrace cryptocurrencies.

Panama City is officially adopting Bitcoin and other cryptocurrencies as mechanisms for municipal payments after the capital of the capital voted in favor of a proposal.

The Municipal Council of the District of Panama approved on Tuesday, April 15, an agreement that authorizes the capital mayor, Mayer Mizrachi, to sign an agreement with a local bank to enable the payment of municipal taxes through cryptocurrencies.

The agreement in particular allows the Panamanian Bank TowerBankfriendly with cryptocurrencies, enable the payment of municipal taxes through cryptocurrencies through a type custody system “Escrow”according to several local media.

As a result, taxpayers from the capital of Panama will now be able to comply with their municipal tax obligations with cryptocurrencies, an effort that makes the historically recognized financial epicenter of Central America into the first public institution of the country to incorporate the new class of assets for public finances.

Panama City takes a step towards financial innovation

The city of Panama will accept four different cryptocurrencies for the payment of municipal taxes: Bitcoin (BTC), Ethereum (ETH), and the USDC and USDT stable, according to a Mizrachi social media post.

These funds in digital currency will automatically convert US dollars by an authorized fiduciary “Without the municipality receiving or directly managing cryptocurrencies”Said the Mayor’s Office.

In the statement, the Panamanian authority clarified that the use of cryptocurrencies will be voluntary and does not replace other payment methods. In addition, the implementation will not have additional costs for the local government.

Among the benefits, the authorities stressed that payments with this kind of assets will facilitate tax compliance from anywhere in the world while reinforcing transparency and modernization in municipal management.

“This decision positions the city of Panama as a pioneer in financial innovation and marks an advance towards a more efficient, inclusive and adapted public management to digital times“the Mayor’s Office added in the statement.

This movement marks a significant step towards the integration of digital currencies in government financial transactions. The decision reflects a growing tendency to accept cryptocurrency in several municipalities around the world, since Panama City joins other cities to explore the potential of technology Blockchain For public finances.

In 2021, El Salvador became the first country in the region and the world to incorporate payments with Bitcoin After recognizing the original cryptocurrency as its legal tender currency. Although the Central American Nation has recently changed its laws of Bitcoin As part of an agreement with the IMF, it is still seen as a crypto epicenter and financial innovation.

The governments of Latin American countries such as Peru, Honduras and Argentina have also embraced cryptocurrencies for municipal finances. Bolivia, on the other hand, turned its restriction when it began using these assets for fuel trade.

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Hannah Estefanía Pérez / Diariobitcoin

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