The Panama City Council has voted to allow citizens to pay taxes, fines, fees and permits using cryptocurrencies.

What Happened: The initiative was spearheaded by Panama City Councilman and tech entrepreneur Mayer Mizrachi, who confirmed the development in a public post on Tuesday.

The policy covers a range of widely used digital assets including Bitcoin BTC/USD, Ethereum ETH/USD and stablecoins USDC/USD and USDT/USD.

According to Mizrachi, this milestone was achieved without requiring new legislation, a key differentiator from previous failed efforts.

"Prior administrations tried to push a bill in the senate to make this possible," Mizrachi explained. "But we found a simple way to do it without new legislation.

Legally, public institutions must receive funds in dollars, so we partnered with a bank who will receive the crypto and convert it on the spot to USD."

This workaround allows the local government to comply with national monetary laws while introducing digital currencies into public finance.

Mizrachi described the move as a model for how to integrate cryptocurrencies into existing government systems, saying it "allows for the free flow of crypto in the entire economy and entire government."

Also Read: Fed To Focus On Recession Risk Soon, But Bitcoin Might Not Benefit: QCP Capital

Why It Matters: The decision aligns with a global shift toward cryptocurrency adoption, spurred by political figures like U.S. President Donald Trump, who came to power in 2024 on a platform that heavily emphasized pro-crypto policies.

Trump's campaign capitalized on the growing crypto community, promising to make the U.S. a global leader in digital assets.

His administration has since authorized a strategic Bitcoin reserve, appointed an AI and crypto czar and pushed for federal crypto legislation, signaling a stark departure from previous U.S. policies.

Trump's vocal support, alongside his family's ventures into NFTs, meme coins and Bitcoin mining, has emboldened other nations and institutions to explore cryptocurrency integration.

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