KEY FACTS: Panama City Mayor Mayer Mizrachi has proposed allowing ships to pay for expedited Panama Canal transit using Bitcoin, a move announced at the Bitcoin 2025 conference in Las Vegas that could integrate cryptocurrency into global trade. The Panama Canal, handling 5% of global shipping and generating $5 billion annually, is central to Panama’s economy, which is increasingly crypto-friendly following the city’s April 2025 decision to accept Bitcoin, Ethereum, and stablecoins for municipal fees. Mizrachi’s plan, inspired by El Salvador’s adoption of Bitcoin, includes exploring a city-level Bitcoin reserve.

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Source: The Bitcoin Conference/ X

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Panama City Mayor Proposes Bitcoin Payments for Faster Panama Canal Transit

Panama City Mayor Mayer Mizrachi has proposed allowing ships to pay for expedited passage through the Panama Canal using Bitcoin. The announcement, made during the Bitcoin 2025 conference in Las Vegas on May 29, has sparked widespread discussion about the intersection of cryptocurrency and international commerce. Mizrachi’s suggestion comes as part of Panama City’s push to embrace digital currencies, following recent legislative moves to accept cryptocurrencies for public services such as taxes and municipal fees.

The Panama Canal, a 50-mile, man-made waterway connecting the Atlantic and Pacific Oceans, is a linchpin of global maritime trade. Handling approximately 5% of the world’s shipping traffic, the canal facilitates the transit of nearly 10,000 ships annually, carrying about 423 million tons of goods. In the fiscal year spanning October 2023 to September 2024, the Panama Canal Authority reported revenues of around $5 billion, underscoring its economic significance. The mayor’s proposal to integrate Bitcoin payments into this critical infrastructure could position Panama as a pioneer in merging traditional trade systems with modern financial technologies.

Speaking alongside El Salvador’s prominent Bitcoin advocates Max Keiser and Stacy Herbert at the Bitcoin 2025 conference, Mizrachi floated the idea of offering a “perk” for ships paying in Bitcoin, suggesting that such payments could allow vessels to bypass delays and secure faster transit through the canal. Mizrachi mused on his posts on X:

“What if you have a perk for paying in Bitcoin? You’d get to go faster,”

This casual remark has ignited a flurry of questions about the feasibility, logistics, and implications of implementing cryptocurrency payments for one of the world’s busiest trade routes.

The proposal is in line with Panama City’s recent strides toward cryptocurrency adoption. In April 2025, the city council approved a measure allowing residents to pay taxes, parking tickets, permits, and other municipal fees using Bitcoin (BTC), Ethereum (ETH), and stablecoins like USD Coin (USDC) and Tether (USDT). To comply with Panama’s legal requirement that public institutions receive funds in U.S. dollars, the city partnered with a bank to convert cryptocurrency payments into fiat currency on the spot. This innovative approach circumvented the need for new national legislation, a hurdle that had previously stalled crypto-friendly initiatives in Panama.

Mizrachi’s vision for Bitcoin extends beyond canal payments. He has hinted at establishing a city-level Bitcoin reserve, inspired by El Salvador’s national Bitcoin strategy, which now includes a reserve holding 6,179 BTC valued at nearly $640 million. During a recent meeting with Keiser and Herbert, Mizrachi posted cryptically on X, writing “Bitcoin Reserve 🚀,” sparking speculation about Panama City’s plans to accumulate cryptocurrency as a hedge against inflation or to attract investment. However, creating a formal Bitcoin reserve would require approval from Panama’s National Assembly, a step that remains in the exploratory phase.

The mayor’s comments also shed light on Panama’s existing cryptocurrency activity. Mizrachi claimed that over $5 billion in Bitcoin transactions occur annually in Panama, though much of this activity remains “behind closed doors” due to limited public acceptance. This figure, while unverified, highlights the growing role of digital currencies in Panama’s economy, which is heavily influenced by Panama City, accounting for over half of the country’s GDP.

Panama’s embrace of cryptocurrency draws inspiration from El Salvador, which became the first country to adopt Bitcoin as legal tender in 2021. Mizrachi’s collaboration with El Salvador’s Bitcoin strategists, including Keiser and Herbert, signals a regional push toward crypto-friendly policies. Panama City has also adopted El Salvador’s “What is Money?” financial literacy textbook for its digital libraries, aiming to educate residents about digital currencies and financial systems. This educational initiative, combined with Mizrachi’s proposals, is an expression of a deeper ambition to position Panama as a cryptocurrency hub in Central America.

Meanwhile, in 2022, Panamanian President Laurentino Cortizo vetoed a bill to regulate Bitcoin and decentralized autonomous organizations, citing concerns about alignment with the country’s financial system. While Panama City’s municipal initiatives have found workarounds, such as partnering with banks for crypto-to-fiat conversions, scaling these efforts to the Panama Canal would likely require national legislative support. Additionally, recent geopolitical tensions, including U.S. President Donald Trump’s calls to “reclaim” the Panama Canal, could complicate the implementation of innovative financial policies.

The global context for Mizrachi’s proposal is one of increasing cryptocurrency adoption by governments and municipalities. Cities like Lugano, Switzerland, and regions in Colorado have implemented crypto payment systems for taxes and fees, often converting digital assets to fiat to comply with local regulations. Panama City’s move to accept Bitcoin for public services places it among a small but growing list of jurisdictions experimenting with digital currencies in governance.

Mizrachi’s appearance at the Bitcoin 2025 conference has amplified anticipation for Panama’s next steps. For now, Mizrachi’s Bitcoin payment proposal remains speculative, with no official timeline or implementation plan announced. The Panama Canal Authority has not publicly commented on the mayor’s suggestion, and logistical details remain unclear. Nevertheless, the idea has captured the imagination of the cryptocurrency community and global trade stakeholders alike, highlighting the potential for digital currencies to disrupt even the most established systems.

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Information Sources:

• The Bitcoin Conference/ X
• Cointelegraph
• The Bitcoin Conference 2025 | Day 3 Livestream

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