Panama City Mayor Proposes Bitcoin Payments for Priority Panama Canal Transit

Highlights:

• The mayor of Panama City suggests allowing Bitcoin payments to improve how easily cargo can pass through the canal.
• Bitcoin payments are now accepted for municipal taxes and public services in Panama City.
• Panama pursues balanced crypto regulation while exploring digital finance amid social challenges.

Panama City Mayor Mizrachi is proposing ways to make transit through the Panama Canal faster for cargo vessels. He recommends that ships using Bitcoin for payments in tolls might be able to bypass lines for longer waiting ships. Mizrachi discussed the idea with Bitcoin advocates from El Salvador during the Bitcoin 2025 conference held in Las Vegas on May 29.

The canal connects the Pacific and Atlantic by offering a major trade route. It reduces the time ships spend on travel by weeks over the route around South America. During the period from October 2023 to September 2024, about 10,000 vessels used the canal to ship 423 million tons of goods. During that period, Panama collected about $5 billion in transit fees.

According to the mayor, allowing Bitcoin payments would make Panama better suited for the tech industry. Allowing ships to pay in Bitcoin for quicker passage may also increase efficiency and attract more business.

AMAZING PANEL WITH MAX, STACY, MIKE, & PANAMA CITY MAYOR MIZRACHI 🔥🚀 pic.twitter.com/E5sqqHbZkJ

— The Bitcoin Conference (@TheBitcoinConf) May 29, 2025

Bitcoin Payments Could Boost Panama Canal Efficiency

The proposal is a further step in Mizrachi’s plans to link Bitcoin more securely with the Panama City economy. The city recently allowed people and businesses to settle their tax, fine, and fee obligations using Bitcoin and similar cryptocurrencies, like Ethereum and USDC. To operate smoothly, the city teamed up with a local bank that immediately converted crypto payments into U.S. dollars.

The move allows citizens more options in how to make payments without requiring government agencies to possess digital currency. Mizrachi is considering the formation of a Panama City Bitcoin reserve. The reserves could help fix municipal budgets and attract more investment. Notably, the mayor says he can set up a reserve without the need for federal law to be passed.

Bitcoin Reserve 🚀

— Mayer Mizrachi (@Mayer) May 16, 2025

Mizrachi advises lawmakers not to move too fast when making crypto regulations. He proposes that Bitcoin should be let to expand naturally, before planning any restrictions or incentives. He suggests that about $5 billion of Bitcoin trading might take place in Panama in a single year, though most people avoid it because of safety concerns. Official backing for the system may lead to its use by more people.

Political Context and Economic Challenges

The Panama Canal has made political headlines lately. Last year, Donald Trump urged the U.S. government to regain control of the canal, saying he was worried about China’s influence. He stated that the system of paying a toll placed excess fees on U.S. ships.

In addition to dealing with Bitcoin payments, Panama is pursuing new digital asset regulation. In March 2025, Panama proposed a bill that would manage crypto providers, impose requirements for AML and KY,C and accept blockchain-based contracts. Yet, Mizrachi believes that lighter regulations initially would promote new innovations.

Panama City is also joining efforts with El Salvador to incorporate Bitcoin learning and financial technology programs. The city also wishes to supply its libraries with educational materials on Bitcoin and start projects connected with renewable energy and mining. The move demonstrates how countries are forming closer connections through the use of digital currency.