tl;dr
Mayer Mizrachi, mayor of Panama City, highlighted Bitcoin's potential positive impact on Panama's economy, proposing initiatives like accepting BTC for municipal taxes and Panama Canal fares. Despite limitations due to national laws and the need to convert BTC to USD, Mizrachi views these efforts as...
Mayer Mizrachi, mayor of Panama City, is championing Bitcoin adoption through innovative municipal initiatives, highlighting how local efforts can spur national economic transformation despite political constraints.
Mizrachi proposes accepting Bitcoin (BTC) for municipal taxes and Panama Canal fares, recognizing the potential positive impact on Panama’s economy. Although national laws require converting BTC to US dollars, these steps serve as foundational moves to inspire broader adoption.
Drawing inspiration from El Salvador’s pioneering role in Bitcoin integration, Mizrachi stresses the importance of building a regional decentralized finance (DeFi) ecosystem and securing political support. He acknowledges that one mayor alone cannot alter the country’s Bitcoin stance, but believes small, local initiatives can cumulatively lead to significant economic change.
Panama has attempted Bitcoin policy reforms in recent years, but efforts repeatedly stalled. Mizrachi’s fresh approach involves crafting a roadmap enabling cities to embrace Bitcoin despite national law, underlining that Panama City accounts for 70% of the country’s GDP—meaning city actions resonate nationwide.
Acceptance of BTC for municipal tax payments has been initiated, though the city must exchange received Bitcoin into US dollars, a move that pushed Panama’s largest banks to start engaging with Bitcoin. Mizrachi has also advised other regional mayors on developing similar initiatives, demonstrating how local projects can reshape the national Bitcoin ecosystem.
Despite these advances, comprehensive adoption requires more political backing. Mizrachi envisions BTC facilitating Panama Canal fare payments but notes potential objections from the US.
He underscores that Panama’s Bitcoin integration depends heavily on establishing an active DeFi ecosystem, and suggests the country could accumulate a Bitcoin Strategic Reserve and strengthen ties with crypto advocates across the region.
Ultimately, Mayer Mizrachi’s efforts serve as a proof of concept for Bitcoin-driven economic opportunities in Central America, reminding us that dedicated local actions can drive meaningful change and pave the way for a better, crypto-enabled future.