Panama’s Bitcoin Strategy keeps developing. The Central American country wants to become a new booming crypto hub. Last month, we had an announcement from Panama City’s mayor, Mayer Mizrachi that the city will start accepting BTC and some cryptos for taxes. And now closing May, Mizrachi took the Bitcoin Conference scenario in Las Vegas, populating some ideas like paying the Panama Canal transit fee with bitcoin, and showcasing how important the country could become in the industry in the short term.

Panama’s bitcoin strategy could transform the country into a natural bridge between traditional finances and cryptocurrencies.

Panama is known for its strong banking system. But when it comes to bitcoin and crypto, most of the efforts and initiatives have been happening with a low profile. But now, since last month, Panama City anounced the the voluntary use of cryptocurrencies as a method of payment for municipal taxes partnering with the self-described crypto-friendly bank, Towerbank for the project.

According to Major Mizrachi, the Panamanian bank was selected because it is the only one offering such services. This agreement was announced in late April during the Panama Blockchain Week conference, as reported by the municipality.

The agreement allows the municipality to integrate a new option for online payments. The key element here is that the provider is Towerbank, and it enables BTC, ETH, USDT, and USDC payments. "They receive the payment in crypto, and the municipality receives dollars, so no new law is needed for Panama or the public sector to adopt Bitcoin and other cryptocurrencies," Mizrachi explained to me in an interview.

"This basically expands the available methods for citizens and businesses to fulfill their tax obligations. Beyond that, it’s a strong statement: Bitcoin is here to stay, Panama knows it, and as the financial capital of Central America and the Caribbean, we are adopting it," Mizrachi underscored.

The Towerbank announcement, the thematic conference where it was done, the participation of the major in the Bitcoin Conference in Las Vegas, Panama’s potential recognized by experts and referents for the Bitcoin community like Stacy Herbert or Max Keiser, and the will of local communities, entrepreneurs, and government all seem to be aligned to clear a path of adoption.

But Panama’s bitcoin strategy, among the different pieces, also has a regulatory framework in the works. In April 2022, Panama's National Assembly passed Bill No. 697, which aimed to regulate the use of cryptocurrencies and digital assets, but in June 2022, President Laurentino Cortizo partially vetoed it.

But in 2025, things are changing. Congressman Andrés Solís Arias proposed a new draft bill in March, and then crypto efforts continued steadily. The bill proposes the voluntary acceptance of cryptocurrencies in commercial transactions, something that contrasts with similar projects like the Bitcoin Law, which at first made BTC compulsory legal tender.

The bill also mandates licensing and registration requirements for Virtual Asset Service Providers, which aligns with other regional regulations, like Argentina. Solis’ proposal promotes the integration of blockchain technology within public administration without specifying the use case and proposes the formal recognition of smart contracts as legally enforceable instruments.

The key objective is to strengthen Panama’s Bitcoin Strategy as a leading fintech jurisdiction in Latin America. The bill has yet to be approved, and with the 2022 precedents, the community and bitcoin advocates' excitement around it should be moderated. But the efforts are there.

"Let’s make history. Approving this regulatory framework means giving Panama a strategic edge in the global digital economy. It's time to act, regulate, and move forward. The future is now," Solis posted on X, sharing an article about the bill published by the Spanish-speaking crypto outlet CriptoNoticias.

The development of Panama’s bitcoin strategy could foster Central America’s influence in the region’s adoption of digital assets. El Salvador is still pioneering with its regulation around bitcoin, digital assets, and real-world assets, and if Panama finally enacts its own law and plan, other neighboring countries could feel compelled to do so.