The city administration of Panama City has made an important decision that allows residents to pay taxes using cryptocurrencies. This has become possible thanks to a partnership with a bank that specializes in processing crypto payments. Thus, Panama City has become a pioneer in implementing cryptocurrency payments at the level of government institutions.
This is reported by Finway
City council member Mayer Mizrachi confirmed that the local administration voted to accept crypto payments, making the city the first in the world to allow such transactions. From now on, citizens can pay taxes, fees, fines, and obtain permits using Bitcoin (BTC), Ethereum (ETH), and stablecoins USDC and USDT.
Bypassing Mechanisms and Legislative Nuances
Despite the fact that according to the law, government institutions are required to accept payments in US dollars, the city council found a legal way to bypass this rule. “We found a simple way to do this without new laws. We are collaborating with a bank that accepts cryptocurrency and instantly converts it into dollars,” Mizrachi explained.
Prospects for Crypto Payments Worldwide
With this approach, government institutions effectively still receive US dollars, which allows them to avoid the need for new legislation. This opens up new opportunities for the free circulation of cryptocurrency in the economy and the public sector. Mizrachi added that previous administrations had attempted to pass a relevant bill through the Senate, but the proposal did not receive support. Similar initiatives have also been considered in New York and North Carolina in the United States.
“We found a simple way to do this without new laws. We are collaborating with a bank that accepts cryptocurrency and instantly converts it into dollars,” Mizrachi explained.