Panama City is set to accept cryptocurrency payments for taxes and municipal fees, including bus tickets and permits, as announced by Mayor Mayer Mizrachi. This move is part of a broader trend among local and national governments worldwide embracing cryptocurrencies. The city plans to use Bitcoin, Ethereum, stablecoins like USDC and Tether's USDT as payment methods once the necessary crypto-to-fiat payment infrastructure is established. Despite previous failed attempts to introduce such legislation due to legal stipulations requiring payments in US dollars, the local government has partnered with a bank to convert digital assets into US dollars immediately upon receipt. This allows Panama City to accept cryptocurrencies without the need for new legislative measures. Similar initiatives are being explored in various jurisdictions, including Colorado, where crypto is already accepted for taxes, and municipalities in Switzerland and Canada that are pursuing Bitcoin-friendly policies.

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