Panama City Considers Accepting Bitcoin Payments for Faster Canal Transits
Mayor Mayer Mizrachi of Panama City has proposed a unique idea to allow ships to pay in Bitcoin for quicker passage through the Panama Canal. This suggestion was made during a panel discussion at Bitcoin 2025 in Las Vegas, where Mizrachi highlighted the potential benefits of incentivizing Bitcoin payments for cargo ships.
The Panama Canal serves as a vital link in global trade, facilitating the transportation of goods between the Caribbean and Pacific Oceans. With nearly 10,000 ship transits recorded between October 2023 and September 2024, accounting for approximately 5% of global maritime commerce, the canal plays a crucial role in international trade.
According to official figures, Panama generated around $5 billion in canal revenue during that period, handling over 423 million tons of cargo. Mizrachi’s proposal aims to explore new avenues for leveraging cryptocurrencies like Bitcoin in enhancing the efficiency and functionality of the Panama Canal.
Mayor Mizrachi has been a vocal advocate for the adoption of Bitcoin and other cryptocurrencies in public services. He has previously suggested the establishment of a Bitcoin reserve for Panama City, which serves as a significant contributor to the country’s GDP.
During his remarks at the Bitcoin 2025 event, Mizrachi emphasized the importance of avoiding excessive regulation in the crypto sector to foster innovation and growth. He urged lawmakers to refrain from imposing premature restrictions that could hinder the development of the industry.
Panama City’s Crypto Initiatives
Earlier this year, Panama City introduced a measure allowing residents to pay municipal taxes, fines, and permits using cryptocurrencies such as Bitcoin, Ethereum, USDC, and Tether. To facilitate these transactions, the city partnered with a bank that converts crypto payments into U.S. dollars instantly, ensuring seamless integration with the existing financial system.
This initiative enables the free flow of cryptocurrencies within the city’s economy and government, enhancing accessibility and convenience for residents. Unlike El Salvador’s mandatory Bitcoin legal tender policy, Panama City’s approach is optional and designed to coexist with traditional financial systems.
Panama’s Evolving Stance on Cryptocurrency
While Panama initially exhibited caution towards cryptocurrencies due to concerns about money laundering and regulatory compliance, the country has gradually embraced a more structured approach to digital asset regulation. In March 2025, a draft bill was introduced to regulate digital assets, emphasizing compliance with international financial standards.
The proposed bill seeks to legalize crypto payments with mutual consent, require licensing for service providers, and enforce AML and KYC compliance. Additionally, it encourages the use of blockchain technology in public services and recognizes smart contracts as legally binding instruments.
Overall, Panama’s evolving stance on cryptocurrencies reflects a balanced approach that aims to harness the benefits of digital assets while ensuring compliance with regulatory standards. Mayor Mizrachi’s innovative proposal to incentivize Bitcoin payments for faster canal transits underscores Panama City’s commitment to exploring new opportunities in the crypto space.