According to Mayor Mayer Mizrachi, the use of Bitcoin should be permitted by Panama City for expedited vessel transit through the Panama Canal.
During a panel at Bitcoin 2025 in Las Vegas, Mayor Mayer Mizrachi proposed granting priority access through the Panama Canal to cargo ships that make payments in Bitcoin.
“We have a canal — what if a perk is offered for making payments in Bitcoin, allowing your ship to transit faster?” Mizrachi suggested.
The Panama Canal, a vital conduit for international trade, connects the Caribbean Sea and the Pacific Ocean. Between October 2023 and September 2024, it facilitated close to 10,000 vessel passages, which represented approximately 5% of the world’s maritime trade.
Official statistics indicate that Panama generated around $5 billion in revenue from the canal during that timeframe, with the transportation of more than 423 million tons of cargo recorded.
The mayor actively supports promoting Bitcoin and other cryptocurrencies for public services and has proposed establishing a Bitcoin reserve for Panama City. The city generates more than half of the nation’s domestic output.
While on stage, Mizrachi also cautioned lawmakers against stepping in too early to regulate the cryptocurrency industry.
He urged regulators to let the sector operate freely, declaring, “Don’t touch it, don’t get near it, don’t even look at it.” He warned that heavy-handed regulation could stifle innovation.
Panama Reconsiders Its Approach to Cryptocurrency Regulation
Panama City approved a measure earlier this year that allows residents to use Bitcoin, Ethereum, USDC, and Tether to pay municipal taxes, fines, and permits.
To meet regulatory obligations, Panama City formed a partnership with a banking institution that immediately converts cryptocurrency payments into U.S. dollars. This setup ensures that government agencies obtain fiat currency directly, without engaging with digital assets themselves.
At the time, Mizrachi posted that this framework enables cryptocurrency to move freely throughout both the national economy and the public sector.
In contrast to El Salvador’s nationwide Bitcoin legal tender initiative, Panama City has implemented an optional approach designed for seamless compatibility with the traditional financial system.
Panama has taken a cautious approach to cryptocurrency but has gradually eased its stance. In May 2022, the parliament passed a crypto bill, yet former President Laurentino Cortizo declined to sign it, citing the need for stronger anti-money laundering measures.
At the time, critics raised concerns that allowing crypto transactions without regulatory oversight could damage Panama’s international reputation. Since the FATF had placed the country on its grey list, global watchdogs closely monitored Panama, citing its history as a tax haven and the vulnerability of its dollar-based economy to financial crimes.
However, those earlier apprehensions have evolved into a more organized strategy. In March 2025, Panama unveiled a revised draft bill focused on regulating digital assets, with the intent of bringing its policies in line with global financial norms.
The proposed bill grants legal recognition to cryptocurrencies as a form of payment when agreed upon by both parties. It introduces licensing requirements for service providers and requires adherence to anti-money laundering (AML) and know-your-customer (KYC) standards. Additionally, the legislation promotes blockchain adoption in public services and acknowledges smart contracts as legally enforceable agreements.
