Panama City Eyes Bitcoin Reserves—Mayor Flirts With Crypto Adoption After El Salvador Powwow

Panama City’s mayor drops not-so-subtle hints about stacking sats following high-level talks with El Salvador—because nothing says ’financial innovation’ like copying the playbook of a country that bought the top.

While bureaucrats elsewhere debate CBDCs, Panama’s flirting with the OG decentralized asset. No concrete plans yet, but the mayor’s Bitcoin whispers just gave crypto Twitter fresh hopium.

Another day, another nation-state considering digital gold... right as Wall Street banks quietly offload their own BTC holdings to retail bagholders.

Panama City could integrate some of El Salvador’s financial literacy books 

Mizrachi has yet to disclose what he discussed with Keiser and Herbert. However, his X post and that of Keiser suggest the trio discussed the possibility of a Bitcoin reserve in Panama and the asset’s future mining operations.

As per Keiser’s post, it’s clear the two countries want to pursue renewable sources of energy to power BTC mining operations. Keiser wrote, “Bitcoin is transforming Central America. El Salvador’s geothermal & Panama’s hydroelectric will power the Bitcoin revolution.”

Additionally, Herbert stated that Panama City will incorporate El Salvador’s “What is Money” financial literacy schoolbooks into their new digital libraries, even adding that the Central American BTC block is growing.

Kaiser and Herbert helped El Salvador formulate and implement its Bitcoin policy. The country now holds 6,179 Bitcoins in its reserve, valued currently at over $640 million.

Panama City has already incorporated digital assets into its payment system

Mizrachi’s subtle suggestion of a BTC reserve is closely timed with the Bitcoin 2025 conference, now just 11 days away. He is expected to attend the conference in Las Vegas.

If he intends to pursue a BTC reserve, he will need to work with the country’s national assembly members to draft a bill. However, so far, there’s nothing to suggest that he’s done that.

Meanwhile, states like Arizona and New Hampshire in the US have already approved the establishment of state-level Bitcoin reserves. Moreover, Ukraine is close to developing its own national BTC reserve.

As per recent reports, the Panama City Council has already accepted digital assets in its payments system. Residents can pay taxes, fines, permits, and municipal fees in various cryptos and stablecoins. 

According to the city’s officials, accepting cryptocurrencies for payments will enhance transparency in municipal financial operations and help Panama cultivate crypto adoption and innovation.

The city council has even collaborated with a bank that immediately converts the received digital assets into US dollars to satisfy all legal requirements. According to Mizrachi, this process ensures compliance with existing financial regulations and enables seamless transactions for both users and the local government.

Other cities like Lugano in Switzerland and Mendoza in Argentina have also implemented systems to accept crypto for tax and fee payments. 

The city’s council passed a proposal last month enabling its local offices to accept payments in crypto, Panama City Mayor Mayer Mizrachi said in an X post. Under the new law, locals can pay for taxes, tickets, permits, and fees with several digital assets, beginning with Bitcoin, Ethereum, and the USDC and Tether (USDT) stablecoins.

Still, there is no clarity on whether and when Panama City will accept other kinds of digital assets in exchange for public services.

The MOVE marks a notable shift in Panama’s evolving stance on crypto, though it hasn’t always been smooth.

In 2022, President Laurentino Cortizo partially vetoed a sweeping crypto bill that sought to regulate Bitcoin and legalize decentralized autonomous organizations (DAOs). He returned the bill to the National Assembly for revisions, citing concerns that it needed to be aligned with Panama’s financial system regulations.

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