Mayor of Panama City wants bitcoin payments for passage through Panama Canal
Panama City Mayor Mayer Mizrachi has an innovative proposal for allowing ships to pass through the Panama Canal faster: paying transit fees in bitcoin. The initiative aims to use cryptocurrency for a more streamlined payment system and position Panama as a leader in digital finance and technology.
The Panama Canal plays a crucial role in world trade, processing nearly 5% of all maritime trade and facilitating the passage of thousands of ships a year. Mizrachi’s proposal comes amid political tensions surrounding the canal, with US President Donald Trump calling for the canal to be brought back under US control. By embracing bitcoin payments, Panama seeks to improve the canal’s competitiveness and efficiency on the global stage.
In addition, Panama City has made significant strides in embracing cryptocurrency at the municipal level. Residents and businesses can now pay taxes, fines and fees with bitcoin and other digital currencies, demonstrating the city’s confidence in digital assets and its commitment to flexible payment options.
Speaking at a cryptocurrency conference in May, Mizrachi has also proposed creating a special bitcoin reserve for Panama City, with the goal of stabilising its finances and attracting new investment opportunities. He has stressed the importance of allowing Bitcoin and other cryptocurrencies to thrive without unnecessary regulation, and urged lawmakers to observe organic growth and intervene only when necessary to protect users or improve systems.
Mizrachi highlighted the significant but largely hidden volume of bitcoin transactions in Panama, estimating it at more than $5 billion annually. He believes more transparency and official support will encourage wider acceptance and participation in the cryptocurrency ecosystem.
Panama’s decision to embrace bitcoin comes against a backdrop of social and economic challenges. The recent layoffs of thousands of workers by banana giant Chiquita have underscored the vulnerability of the population. In this context, Mizrachi has promoted cryptocurrencies as potential safety nets when traditional systems do not provide sufficient support.
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