Panama City to Accept Bitcoin, Ether, and USDC for Taxes and Fees

💡 Panama Crypto Taxes: Pay City Fees with BTC, ETH, USDC & USDT

Panama crypto taxes are no longer just a concept. Panama City now allows residents to pay taxes and municipal fees using cryptocurrencies. These include Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT).

This marks a bold step forward in Latin America’s growing crypto adoption.

✅ How Panama Crypto Taxes Work

Residents can now use crypto to pay for local services such as taxes, tickets, and permits. Instead of holding the crypto, the city instantly converts it into U.S. dollars through local partner banks.

As a result, this system eliminates the need for new crypto legislation while offering a convenient payment option. Mayor Mizrachi Matalon emphasized that this crypto-to-fiat model is both efficient and legal under current frameworks.

🌍 Panama Joins a Global Trend

Panama crypto taxes align with an international shift toward government-backed crypto payments.

For example, in Lugano, Switzerland, residents can pay public fees using BTC and USDT. Similarly, Vancouver adopted crypto payments in 2024, and U.S. states like Colorado and North Carolina have tested similar systems.

Meanwhile, other nations such as Vanuatu accept Bitcoin for citizenship and immigration-related services.

However, not all regions are moving forward. In early 2025, El Salvador amended its Bitcoin law, removing the option to pay taxes with BTC. Nevertheless, global adoption remains on the rise.

📈 Why It Matters

Panama City’s move is more than symbolic—it’s strategic. By enabling crypto payments, the city becomes more attractive to digital nomads, tech investors, and fintech startups.

Furthermore, this approach helps increase financial inclusion and efficiency. It also allows Panama City to modernize without waiting for slow-moving national legislation.

In addition, a successful rollout may encourage other Latin American cities to adopt similar models.

🧾 Final Thoughts

Panama crypto taxes represent a forward-thinking strategy in a region still developing its stance on digital assets. In conclusion, as more cities test similar initiatives, Panama could serve as a model for crypto integration in public services.