Panama City Mayor Mayer Mizrachi has proposed granting priority access to ships that pay transit fees using Bitcoin. This initiative aims to integrate cryptocurrency into the canal’s operations, potentially offering a more efficient payment method for expedited passage. Mizrachi shared this idea on May 29 while speaking at the Bitcoin 2025 conference in Las Vegas alongside other Bitcoin supporters from El Salvador. Panama City Mayor proposes Bitcoin payments for priority canal transit Mizrachi spoke on the panel alongside Bitcoin advocates, El Salvador government advisors Max Keiser and Stacy Herbert, and moderator Mike Peterson from Bitcoin Beach. He suggested that cargo ships waiting to pass through the Panama Canal can pay their transit fees in Bitcoin and get priority access. The mayor pointed out that this idea could position Panama as a leading digital finance and technology center and bring Bitcoin deeper into the country’s economy. The Panama Canal saves cargo ships weeks of travel time that they would have to spend if they sailed around the southern tip of South America because it links the Pacific Ocean and the Caribbean Sea. The canal handles about 5% of all global maritime commerce, and nearly 10,000 ships passed through it between October 2023 and September 2024, carrying more than 423 million tons of cargo and generating almost $5 billion in revenue for Panama. Mizrachi’s idea comes at a time of political tension since President Donald Trump publicly demanded that the United States take back control of the Panama Canal in December 2024. Trump criticized the toll system by claiming that U.S. ships pay higher fees than ships from other countries and argued that China’s growing influence over the canal threatens American interests. The mayor’s idea to accept Bitcoin payments for faster canal transit in this complicated situation supports Panama’s digital growth goals. It makes the canal more competitive and efficient on the international trade stage. Panama City embraces Bitcoin for tax payments and proposes City-level crypto reserve Panama City approved a new rule that allows people and businesses to pay their municipal taxes, fines, and fees using Bitcoin and other digital currencies. This move shows that the city trusts digital currency and wants to give people more flexible ways to meet their financial obligations to the government. Mayor Mizrachi also proposed to create a dedicated Bitcoin reserve for Panama City to help stabilize its finances and attract new investment opportunities since the city contributes more than half of the country’s gross domestic product. He also said he could set up the reserve at the city level without waiting for the national legislature to pass any new laws. The mayor used strong language to warn lawmakers to avoid rushing into new rules that could slow progress or scare away innovation. He said, “Don’t touch it, don’t get near it, don’t even look at it,” emphasizing that the government should give Bitcoin and other cryptocurrencies the space to grow naturally. Mizrachi told lawmakers to watch how people use Bitcoin over time and only bring rules that protect users or improve systems. Mizrachi said the country transacts over $5 billion in Bitcoin annually, but most of it remains hidden because many fear the legal or social risks of being open about their involvement with crypto. The mayor believes that making the system more open, transparent, and officially supported will encourage more people and businesses to come forward. The decision to adopt Bitcoin also comes amidst social and economic tension. Panama declared a state of emergency in the Bocas del Toro province following news that a well-known banana company, Chiquita, was laying off over 5,000 workers. Those employees were demonstrating for additional social security guarantees and improved working conditions. In other discussion forums, Mizrach sai d cr yptocurrencies can function as safety nets when traditional infrastructures do not help the country’s most vulnerable people. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
