KEY FACTS: Panama City Mayor Mayer Mizrachi has sparked speculation about establishing a city-level Bitcoin reserve, following a meeting with El Salvador’s Bitcoin advocates, Max Keiser and Stacy Herbert, on May 16, 2025. The announcement, teased in a cryptic social media post, comes after Panama City’s April 2025 decision to accept Bitcoin, Ether, and stablecoins for municipal payments. Discussions with El Salvador focused on leveraging Panama’s hydroelectric resources for sustainable Bitcoin mining and integrating El Salvador’s financial literacy resources into Panama City’s education system.

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Source: Panama City Flag, Bitcoin

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Panama City Mayor Hints at Bitcoin Reserve

Panama City Mayor Mayer Mizrachi has hinted at the creation of a city-level Bitcoin reserve, a potential milestone in Central America’s growing embrace of digital currencies. The suggestion came in a cryptic social media post on May 16, 2025, following a high-profile meeting with two of El Salvador’s most prominent Bitcoin advocates, Max Keiser and Stacy Herbert. The post, simply stating “Bitcoin Reserve,” has sparked widespread speculation about Panama City’s plans to deepen its engagement with cryptocurrency.

Bitcoin Reserve 🚀
Source

The announcement follows Panama City’s recent steps toward cryptocurrency adoption, including a decision in April 2025 to accept Bitcoin (BTC), Ether (ETH), and stablecoins like USDC and Tether (USDT) for municipal payments such as taxes, parking tickets, and permits. This policy, which involves a local bank converting crypto payments into U.S. dollars to comply with existing regulations, has already positioned Panama City as a regional leader in crypto-friendly governance. Now, Mizrachi’s latest hint suggests the city may be aiming for an even bolder leap: establishing a strategic Bitcoin reserve to bolster its financial infrastructure and hedge against economic uncertainty.

The catalyst for Mizrachi’s provocative post appears to be his discussions with Keiser and Herbert, key figures behind El Salvador’s transformative Bitcoin policies. El Salvador made history in 2021 as the first nation to adopt Bitcoin as legal tender, and under the leadership of President Nayib Bukele, the country has amassed a national Bitcoin reserve of 6,179 BTC, valued at approximately $644 million as of May 15, 2025. Despite facing pressure from international bodies like the International Monetary Fund (IMF) to scale back its Bitcoin purchases, El Salvador has continued to accumulate the cryptocurrency, leveraging its geothermal energy resources to power Bitcoin mining operations.

According to posts on X from Keiser, the trio’s discussions focused on how Panama and El Salvador could harness their respective renewable energy resources, that is, hydroelectric power in Panama and geothermal energy in El Salvador, to support sustainable Bitcoin mining. This emphasis on green energy aligns with global trends in cryptocurrency, where environmental concerns have pushed miners to seek eco-friendly solutions. Panama, with its abundant hydroelectric resources, is well-positioned to develop a robust Bitcoin mining infrastructure, potentially attracting investment and fostering economic growth.

Stacy Herbert, who serves as director of El Salvador’s National Bitcoin Office, also revealed a significant educational collaboration between the two nations. Panama City plans to integrate El Salvador’s “What is Money?” financial literacy textbook into its online library system, signaling a commitment to educating its citizens about Bitcoin and decentralized finance. This initiative underscores a shared vision of empowering communities through financial innovation, a cornerstone of El Salvador’s Bitcoin experiment.

Panama City’s flirtation with cryptocurrency is not new, but Mizrachi’s recent actions suggest an acceleration of its ambitions. In April 2025, the city council voted to accept select cryptocurrencies for municipal fees, a decision that Mayor Mizrachi described as a practical step to modernize public services without requiring new legislation. Panama City has navigated regulatory hurdles by partnering with a bank to convert crypto payments into fiat currency while appealing to a growing demographic of crypto-savvy residents and businesses.

The prospect of a Bitcoin reserve, however, represents a far more audacious goal. A city-level reserve would involve holding Bitcoin as a strategic asset, potentially as a hedge against inflation or currency devaluation. Such a move would place Panama City in the vanguard of municipal governments exploring cryptocurrency as a tool for financial resilience. While Mizrachi has not elaborated on the specifics of the reserve, the timing of his post, just 11 days before his scheduled appearance at the Bitcoin 2025 conference in Las Vegas, suggests that further details may soon emerge.

At the Bitcoin 2025 conference, Mizrachi is expected to address Panama City’s crypto strategy, potentially shedding light on the feasibility and scope of the proposed reserve. Analysts speculate that the city could follow El Salvador’s playbook, accumulating Bitcoin through regular purchases or mining operations. Alternatively, Panama City might explore innovative financing mechanisms, such as issuing bonds tied to its Bitcoin holdings, though such moves would likely require approval from national lawmakers.

Let's watch the unfolding of these exciting times.

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Information Sources:

• Panama City Mayor Mayer Mizrachi / X
• Cointelegraph

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