Proposed by Panama City Mayor: Bitcoin Transactions for Priority Canal Transit via Panama Canal
Panama City ponders Bitcoin for expedited canal passage
Panama City is considering accepting Bitcoin as a payment method for faster passage through the Panama Canal, as per Mayor Mayer Mizrachi's suggestion. This proposal was made during a panel discussion at Bitcoin 2025 in Las Vegas. Mizrachi posited the idea of rewarding priority canal transit for cargo ships that pay their transit fees in Bitcoin.
The Panama Canal acts as a vital artery for global trade, linking the Caribbean and Pacific Oceans. Over 9,000 ship transits were recorded between October 2023 and September 2024, accounting for roughly 5% of global maritime commerce. Revenue from these transactions reached approximately $5 billion, with over 423 million tons of cargo transported during this period.
Mizrachi has been an advocate for the use of Bitcoin and other digital currencies in public services. In addition, he has proposed establishing a Bitcoin reserve for Panama City, which contributes significantly to the country's domestic product. During his presentation, Mizrachi also urged lawmakers to abstain from overregulating the crypto sector, arguing that excessive regulation could stifle innovation in the industry.
In an earlier move, Panama City approved a measure allowing residents to pay municipal taxes, fines, and permits using Bitcoin, Ethereum, USDC, and Tether. To comply with legal requirements, the city coordinated with a bank that instantly converts cryptocurrency payments to US dollars, enabling public institutions to receive funds in fiat without directly handling digital assets.
While Panama's national stance on cryptocurrencies has been more reserved, it has shown signs of softening over time. In May 2022, former President Laurentino Cortizo declined to sign a crypto bill passed by the parliament, citing the necessity of stronger anti-money laundering measures. However, concerns regarding unregulated crypto transactions and their potential impact on Panama's standing as a tax haven have given way to a more structured approach.
In March 2025, Panama introduced a draft bill aimed at regulating digital assets while maintaining compliance with international financial standards. The bill proposes recognizing crypto as a payment option with mutual consent, enforcing licensing for service providers, and mandating adherence to anti-money laundering and know-your-customer norms. The bill also encourages the use of blockchain in public services and acknowledges smart contracts as legally binding.
Meanwhile, Jack Dorsey's Block aims to enable Bitcoin payments for nearly 4 million Square merchants by 2026. These developments underscore the growing interest in cryptocurrencies and their potential role in modern economies.
- Mayor Mayer Mizrachi, in his proposal at Bitcoin 2025, suggested that Panama City could expedite canal passage for cargo ships that pay their fees in Bitcoin, signifying the city's consideration of digital currencies for public services.
- In alignment with Mizrachi's vision, Panama City has already approved the use of Bitcoin, Ethereum, USDC, and Tether for paying municipal taxes, fines, and permits, demonstrating a forward-thinking approach towards crypto integration in local finance.
- As the Panamanian government prepares to regulate digital assets, it is crucial to maintain international financial standards, as evident in the draft bill introduced in March 2025, which encourages blockchain adoption in public services while ensuring compliance with anti-money laundering and know-your-customer norms.
- Jack Dorsey's Block is working actively to enable Bitcoin payments for Square's nearly 4 million merchants by 2026, foreshadowing potential widespread uptake and integration of cryptocurrencies in global business and commerce.
- The growing acceptance of Bitcoin and other cryptocurrencies, alongside favorable regulatory environments like Panama's, suggests that these innovative technologies will likely reshape the landscape of finance and technology in the years to come.
