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At ForumPay, we believe that the power of crypto lies in its utility and real-world applications, primarily crypto payments. What greater utility or real-world application than being able to pay taxes with cryptocurrency? This is exactly what Panama City residents are now able to do following the capital’s decision to accept crypto payments for taxes in BTC, ETH, USDT, and USDC, as well as other municipal charges such as fees, permits, and tickets. The decision is a tremendous step forward in crypto integration, and increases flexibility for residents, opening up a new payment option while maintaining the possibility to pay in U.S. dollars.
In this article, we explore the story behind Panama City’s move to accept crypto payments for taxes, how other cities and countries are adopting similar initiatives, and what this could mean for the future of digital currencies in everyday transactions.
Panama City accepts crypto payments for taxes
Panama City has officially decided to accept crypto payments for taxes and other municipal payments such as fees, permits, and fines using Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT). This move, announced by Mayor Mayer Mizrachi on Wednesday the 23rd of April, aims to improve the transparency of municipal financial operations. It also positions Panama City as a leader in crypto adoption and financial innovation, and reflects a growing global trend among governments around the world exploring the benefits of digital currencies.
Other cities, such as Lugano in Switzerland and Mendoza in Argentina, have already implemented systems to accept crypto for tax and fee payments. In order to implement the initiative, the city council partnered with a bank that will accept crypto payments from residents and instantly convert these digital funds into U.S. dollars, given that it is a legal requirement for public institutions to receive payments in dollars. The decision could also potentially attract more people and businesses to the region, looking for more opportunities to boost the utility of their crypto holdings.
Cities and countries around the world accepting crypto payments
Panama City is not alone in its forward-thinking decision. Detroit is set to become the largest city in the U.S. to accept crypto payments for taxes and other municipal fees, according to a Detroit city council announcement in November 2024. Beginning in mid-2025, residents will have the option to pay using digital assets such as Bitcoin and Ethereum through a secure platform. Mayor Mike Duggan stated how this move aims to create a technology-friendly environment that empowers both residents and entrepreneurs. As well as crypto payments, Detroit also invited blockchain entrepreneurs to propose civic applications that leverage blockchain technology to improve transparency, data security, and public service efficiency.
Back in September 2021, El Salvador made history by becoming the first country to adopt Bitcoin as legal tender, in a bid to enhance financial inclusion and reduce remittance costs thanks to crypto’s cross-border nature. To help residents with the transition, the government also introduced the Chivo Wallet, a state-backed digital wallet allowing users to transact in both Bitcoin and U.S. dollars without fees. Citizens were also offered a $30 Bitcoin bonus upon registration to boost adoption. However, widespread adoption remained low, and in late 2024, the government rolled back mandatory Bitcoin acceptance and scaled down its involvement with Chivo Wallet.
The future of digital currencies in everyday transactions
As proven by Panama City’s recent embrace of digital currencies, the integration of crypto into everyday transactions is no longer a distant idea. The bridging of decentralized and centralized financial systems is a reality for many merchants and consumers around the world. In fact, consumers increasingly expect to have the chance to pay in crypto just as easily as they would with a credit card. At ForumPay, we are at the forefront of this payments evolution.
Much like the solution adopted by Panama City, our crypto payment gateway allows merchants, governments and service providers to accept a wide range of cryptocurrencies with instant conversion into local fiat currencies, eliminating the risk of volatility and ensuring next-day settlement of funds. Our solution is designed to integrate seamlessly into existing payment infrastructures, which means zero disruption to business or administrative operations. We also support transactions from any wallet, anywhere in the world, making it easier and more convenient for consumers to spend their digital assets.
For more on crypto trends, or to learn how to integrate crypto payments into your business’ workflow, visit www.forumpay.com, or get in touch with our sales team to discuss any questions you may have.
