Panama City Embraces Bitcoin: Towerbank to Handle Municipal Crypto Payments

Panama City has made a bold leap into the future of finance.
In a landmark agreement, Panama City has partnered with Towerbank, one of the country’s most prominent financial institutions, to officially enable cryptocurrency payments for municipal services — including taxes, permits, and service fees.

This move positions Panama City at the forefront of Latin America's digital transformation, following in the footsteps of other progressive cities around the world.

A Strategic Response to Legislative Barriers

Last year, efforts to pass a Crypto Law in Panama stalled. Rather than waiting for legal reform, Mayor Mayer Mizrachi and his team took a pragmatic approach by establishing a direct partnership with Towerbank. This strategic pivot bypasses the need for new legislation while maintaining compliance with current financial regulations.

"We had to act fast," said Mizrachi. "We couldn’t let bureaucracy slow our progress. Towerbank gave us the solution we needed.”

How It Works: Seamless & Compliant Crypto Payments

Despite Panama’s legal requirement that public institutions accept only U.S. dollars, the system remains fully compliant. Towerbank acts as an intermediary, instantly converting Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT) into fiat currency at the point of payment.

This ensures:

• No legal conflicts
• Transparent transactions
• Efficient service delivery

Towerbank’s Role: Enabler of Innovation

Towerbank’s involvement is pivotal. As one of Panama’s leading banks, it brings:

• Credibility to the initiative
• Infrastructure for real-time conversion
• Security for all parties involved

Mizrachi emphasized that this kind of agility is key: “Without institutions like Towerbank, we risk falling behind in the global financial race.”

This collaboration positions Panama City as a sandbox for crypto-financial experimentation, providing a regional advantage in fintech innovation.

Part of a Global Movement

Panama City now joins a growing list of governments embracing crypto payments:

• Colorado, USA (2022) – Accepts crypto for state taxes, instantly converted to USD
• Vancouver, Canada (2024) – Exploring municipal crypto adoption
• Lugano, Switzerland – Fully integrated crypto payments for public services

With a dollarized economy, mature banking sector, and rising Bitcoin adoption, Panama City is positioning itself as the “Financial Capital of LatAm.”

This milestone not only sets a precedent for other Panamanian municipalities but also offers a compelling case study for emerging economies exploring crypto adoption without waiting for legislative reform.