According to Mayor Mayer Mizrachi, the use of Bitcoin should be permitted by Panama City for expedited vessel transit through the Panama Canal.
While speaking at a panel during Bitcoin 2025 in Las Vegas, Mayor Mayer Mizrachi proposed that cargo ships making payments in Bitcoin could be granted priority access through the Panama Canal.
“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 promotion of Bitcoin and other cryptocurrencies for public services has been actively supported by the mayor, who also proposed establishing a Bitcoin reserve for Panama City—a city responsible for generating 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 emphasized that the sector should be allowed to function without interference, saying, “Don’t touch it, don’t get near it, don’t even look at it,” while warning that excessive regulation might hinder innovation.
A measure was approved earlier this year by Panama City, enabling residents to use Bitcoin, Ethereum, USDC, and Tether to pay for 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 Reconsiders Its Approach to Cryptocurrency Regulation
Panama’s national approach to cryptocurrency has been marked by caution, though it has gradually become more lenient. In May 2022, a crypto bill that had been passed by parliament was not signed by former President Laurentino Cortizo, who pointed to the necessity of more robust anti-money laundering provisions.
At the time, concerns were raised by critics that permitting crypto transactions without regulatory oversight might harm Panama’s international reputation. As the country was listed on the FATF grey list, it faced heightened scrutiny due to its reputation as a tax haven and the susceptibility 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.
