The Panama City Council has approved using cryptocurrencies to pay taxes, permits, tickets, and fees. The decision enables residents to use Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT) for city-related payments. This move is expected to modernize the city’s payment system and expand financial access for both local and international taxpayers.
Panama City Enables Bitcoin Tax Payments
The municipal payments system enables Bitcoin payments for residents through its partnership with Towertrust Inc. and Towerbank International Inc. The city administration maintains standard financial compliance by quickly converting Bitcoin into dollars. This process allows the Mayor’s Office to receive monetary contributions while keeping all current tax systems intact.
The city residents can use this payment method voluntarily while continuing to use standard U.S. dollar payment methods. The integration process of the payment system leads to no expenses for government entities and maintains existing tax rate structures. The Bitcoin payment system functions via an escrow system that improves fund exchange efficiency while ensuring complete transparency in transaction processes.
Remote taxpayers will gain better accessibility to tax payment methods because the system enables Bitcoin payments from any global location per the Mayor’s Office. Cryptocurrencies promote wider digital currency adoption in Panama’s economy while ensuring no negative impact on its stable exchange rate. Such an action by Panama City’s authorities allows comparable decentralization by additional local or regional institutions.
Ethereum Included in Payment Rollout
The Panama City program now enables public obligations to be paid using Ethereum as one of its supported cryptocurrency options. The currency conversion at Towerbank transforms Ethereum payments into U.S. dollars with an immediate effect, thus protecting against crypto volatility. Through this measure, public revenue maintains consistent and predictable profiles free from market fluctuations.
Ethereum was chosen for public service payments because it provides extensive functionality and secure operations. By embracing Ethereum, Panama City enhances its position as a modern city, which attracts forward-thinking individuals as well as international community members. People who handle digital assets have added flexibility because this system provides multiple options for day-to-day management needs.
Ethereum’s selection by the Mayor’s Office reflects their strategic attitude toward progress and inclusive financial systems. The alliance between Towerbank and the city allows digital payment systems to be implemented smoothly while eliminating bureaucratic obstacles. The previous government tried unsuccessfully to legalize crypto, yet this workaround did not require a Senate agreement.
USDC and USDT Enhance Stablecoin Utility
The authorities in Panama City have implemented stablecoins USDC and USDT as acceptance for taxing and licensing payments and ticket purchases. The stability of both crypto assets results from their U.S. dollar-based peg, which reduces volatility risks. The stablecoin implementation provides city authorities and customers with transparent financial values and straightforward exchange procedures.
USDC and USDT provide a more stable exchange value than Bitcoin or Ethereum since they maintain a stable relationship with the U.S. dollar. Residents who choose digital assets gain security against transaction price reductions because USDC and USDT support their needs. This method delivers comfort as a secure digital payment system for newcomers who want to explore crypto operations.
Towerbank will process stablecoin payments by instantly converting them into dollars before any transaction takes place. The system ensures steady accounting operations and avoids disruptions to financial means. Since the city has established this model, other Latin American municipalities should adopt it.
FAQs
What cryptocurrencies can be used to pay taxes in Panama City?
Residents can use Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Tether (USDT) to pay municipal taxes and fees.
Will taxpayers be forced to use cryptocurrencies?
No, using cryptocurrencies for payment is entirely voluntary. Traditional payment methods remain fully available to all residents.
How does the city handle crypto price fluctuations?
Towerbank converts all cryptocurrency payments into U.S. dollars instantly to eliminate risks from market volatility.
Is this initiative available for all of Panama?
Currently, the crypto payment system applies only to Panama City, not the entire country.
Are there any additional charges for paying in crypto?
No, there are no extra fees or charges for choosing to pay with cryptocurrencies.
Glossary of Key Terms
Cryptocurrency – A digital or virtual form of currency secured by cryptography, often decentralized.
Bitcoin (BTC) – A leading decentralized cryptocurrency created in 2009, often used as a digital asset or investment.
Ethereum (ETH) – A blockchain-based platform known for supporting smart contracts and its native cryptocurrency, Ether.
USD Coin (USDC) – A stablecoin backed 1:1 by U.S. dollars, commonly used for digital transactions.
Tether (USDT) – Another U.S. dollar-pegged stablecoin, often used for trading and payment transfers.
Escrow System – A financial arrangement where a third party holds funds temporarily during a transaction process.
Towerbank – A financial institution in Panama managing the real-time conversion of cryptocurrency to fiat currency.
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