Panama City Officially Adopts Bitcoin, Ethereum, and USDC for Tax and Fee Payments – Key Details Explained

Panama City has announced a groundbreaking initiative to accept cryptocurrency payments for taxes and municipal fees, including Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC). This move positions Panama as a forward-thinking hub for digital asset adoption in public finance. Residents and businesses can now leverage major cryptocurrencies to fulfill fiscal obligations, streamlining transactions through blockchain technology. The city government has partnered with certified payment processors to ensure secure, compliant conversions between crypto and fiat. This policy aligns with Panama’s broader strategy to embrace fintech innovation while maintaining regulatory oversight. Officials emphasize that all crypto payments will be instantly converted to the local currency to mitigate volatility risks. Taxpayers must use approved wallets and exchanges for transactions, with detailed guidelines available on the city’s official portal.

Growing acceptance of Bitcoin, altcoins

Cryptocurrency payments and adoption have been growing across several global territories and cities.

For example, in Lugano City, Switzerland, BTC and USDT payments began in December 2023 for tax and other city-related fees.

In December 2024, Canada’s Vancouver followed Lugano’s steps and announced an integration of BTC into its financial system, to support even tax payments.

In fact, even the U.S. states of Colorado and North Carolina explored similar crypto payments. 

Besides, other countries like Vanuatu accept Bitcoin for citizenship applications and integrate it with their immigration payments. 

However, some jurisdictions have dialed back their crypto payment adoption. In El Salvador, the amended Bitcoin law in early 2025 effectively scrapped tax payments through BTC.  

That said, most experts have projected massive stablecoin adoption, including payments, if the U.S. passes pending bills in the summer.