- Panama City now accepts crypto for public payments.
- BTC, ETH, USDC, and USDT added to payment options.
Panama City has taken a historic step toward digital transformation. The city council has officially voted in favor of accepting cryptocurrency for government-related payments. As a result, Panama City has integrated Bitcoin (BTC) and Ethereum (ETH) alongside USD Coin (USDC) and Tether (USDT) into its payment infrastructure so that citizens can use digital assets for taxes and other public transactions.
Panama Launches Government Crypto Payments with BTC, ETH, USDT, USDC
Mayor Mayer Mizrachi Matalon announced on X that Panama City will be the first public institution in the country to accept crypto payments. As a result, it becomes one of the pioneers globally in integrating digital assets into government services.
Panama City found a way to solve the public institution’s requirement for dollar fund acceptance even when the law stipulates U.S. dollar payments. Panama City has chosen to develop a partnership with a local bank, which will manage crypto-to-USD exchanges in order to implement this service. The government can accept dollar payments through the partnership with the bank as citizens benefit from crypto payment options.
The program begins with two major cryptocurrency choices, including Bitcoin and Ethereum, together with stablecoins USDC and USDT. These widely used digital assets excel for international financial deals so they serve as the practical starting point for this project development.
This initiative supports Panama’s current national mission to develop modern financial and regulatory systems. This year, the Panamanian government launched a draft bill that established rules for the cryptocurrency sector while allowing people to make optional digital payment transactions nationally.
Multiple essential changes pave the way through the proposed legislation. Opening the National Council of Digital Assets (CONAD) serves as the first objective of this legislation to oversee digital asset regulations and supervisory functions. Through this law, the governing body works on building regulations for cryptocurrency use across civil and commercial business scenarios.
Panama Aims to Attract Tech Investment with Pro-Crypto Policies
The bill requires Virtual Asset Service Providers (VASPs) to meet international and national regulatory standards through its compliance requirements. Through this initiative blockchain technology receives support for its use in public sector applications such as digital identification programs and smart contracts, as well as transparent governance solutions.
The national crypto bill obtains practical validation through this recent passage by the city council which demonstrates how digital assets function in government operations. The country announces its willingness to innovate through this policy as well as its effort to draw investments for the tech and fintech industries.
In addition, the adoption of crypto payments would drive both enhanced financial inclusivity and better transparency and efficiency. The city provides additional service access to all its residents through digital currency acceptance since certain residents possess access to digital wallets instead of traditional banking options.
Panama City made important progress when it chose to accept crypto payments in its city payment system. Through this initiative, local governments demonstrate their ability to pioneer financial innovation. The city works alongside banks to turn cryptos into dollars, thereby staying clear of legal restrictions while backing advanced financial solutions. The national regulatory framework development will likely use this experimental program to establish standards that attract digital economy entry by other cities and countries.
Ultimately, Panama undertakes this project to establish its position as a leading technologically advanced nation that embraces innovative banking tools in government programs.
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