AdLunam
Loading...
AdLunam
Loading...
14,743
Lunam Points
Panama City will begin to accept Bitcoin (BTC), Ethereum (ETH) and popular staboins such as USDC and USDT for public service payments, including taxes, costs, permits and fines, in a decision that positions capital as a regional pioneer in the adoption of crypto.
The mayor Mayer Mizrachi Matalon announced the initiative on April 16 and described it as “historic vote” by the municipal council to modernize public finances and extend access to decentralized payment options.
The change should take effect by a partnership with a local banking institution which will instantly convert the incoming cryptographic payments to US dollars, which remains the only legal tender authorized for government transactions in Panama.
The mechanism allows Panama City to bypass a national legal obstacle: under the Panamanian law, government agencies must transform exclusively into US dollars.
By integrating a conversion system in real time through the bank, the city maintains legal compliance while authorizing the use of cryptography at the front. This bypass solution allows a de facto crypto payment system without requiring the approval of the national legislature.
The announcement comes as the Panamanian government continues to debate a bill on national cryptography for a long time
Presented for the first time in 2022, the bill has been revised several times over the years. The proposed legislation would establish a legal framework for the innovation of blockchain and the use of digital assets across the country.
However, he has faced repeated obstacles to the Senate, in particular concerning constitutional concerns and the role of the Central Bank.
The latest version of the bill, unveiled earlier this year, aims to regulate virtual asset service providers (VASP), including digital exchanges and portfolios while applying strict money laundering (AML) and connoisseur (KYC) rules.
The framework also describes the directives for the use of blockchain in legal and financial services, including token titles, smart contracts and decentralized platforms.
Panama City’s decision could act as a pressure point for a broader adoption of the cryptography bill, demonstrating the feasibility of the integration of digital assets into existing financial systems without risking legal non-compliance.
The city has not revealed which payment suppliers or portfolios will be supported, but local authorities have said that new advice would be published before the full deployment of the program later this year.
post url: https://altcoin.observer/panama-city-council-greenlights-crypto-payments-for-tax-public-services/