Panama becomes a crypto hub: Bitcoin for taxes and canal fees!

Panama becomes a crypto hub: Bitcoin for taxes and canal fees!

Panama is increasingly becoming a cryptocurrency hub in Central America. The country’s government and financial institutions show a strong commitment to integrating cryptocurrencies into the financial system. A key element of this strategy is the decision for the city of Panama to accept Bitcoin and other cryptocurrencies as payment for municipal taxes. This was made possible in a partnership with Towerbank, the only bank in the country to offer such services. The announcement of these new tax payment options came during Panama Blockchain Week in April 2025, when Mayor Mayer Mizrachi attended the Bitcoin conference in Las Vegas.

Mizrachi presented exciting ideas during his appearance in Las Vegas, including a proposal to pay the Panama Canal transit fees with Bitcoin. These measures could help bridge the gap between traditional finance and cryptocurrencies, as Panama has a strong banking system but has had little visibility in the area of ​​crypto initiatives. Acceptance of Bitcoin and other digital currencies for taxes could be a significant step towards an innovative digital financial system.

Draft laws and regulation

However, the legal framework for cryptocurrencies in Panama is still in flux. In 2022, a draft bill to regulate cryptocurrencies was partially defeated. In March 2025, MP Andrés Solís Arias introduced a new bill that would provide for the voluntary acceptance of cryptocurrencies in commercial transactions. This draft contains regulations for the licensing and registration of virtual asset providers and aims to promote blockchain technology in public administration.

With this strategy, Panama is pursuing the ambitious goal of establishing itself as a leading fintech jurisdiction in Latin America. The developments could affect not only the national interest, but also the entire regional environment. Experts and community leaders see great potential in Panama's push for crypto integration, while concerns about approval of the regulatory framework are muted based on previous experiences.

influence on the region

Panama’s Bitcoin strategy could also ultimately drive adoption of digital assets across Central America. Given the pioneering work that El Salvador has done in Bitcoin regulation, Panama may be able to serve as an example for neighboring countries. It remains to be seen how successfully the plans can be put into action, but the intention to make Panama the cryptocurrency hub in the region is clear.

Overall, Panama, with its diverse initiatives and a proactive government, shows that it is ready to take advantage of the challenges and opportunities of digital finance. The interactions between traditional finance and digital assets could have a significant long-term impact on local and regional economies.

For further information on Panama's strategy regarding cryptocurrencies, read here: IT Boltwise and Forbes.