Panama City should allow ships to pay in Bitcoin for faster passage through the Panama Canal, according to Mayor Mayer Mizrachi.

During a panel at Bitcoin 2025 in Las Vegas, Mizrachi suggested that Bitcoin payments could be rewarded with priority canal transit for cargo ships.

“We have a canal — what if you get a perk for paying in Bitcoin, get your ship to go quicker if you pay in Bitcoin,” Mizrachi said.

The Panama Canal is a key artery of global trade, linking the Caribbean and Pacific Oceans. It handled nearly 10,000 ship transits between October 2023 and September 2024, accounting for about 5% of global maritime commerce.

According to official figures, Panama earned roughly $5 billion in canal revenue during that period, with over 423 million tons of cargo transported.

The mayor has recently championed the use of Bitcoin and other cryptocurrencies in public services and has proposed the creation of a Bitcoin reserve for Panama City, which generates over half of the country’s domestic product.

During his time on stage, Mizrachi also urged lawmakers to avoid prematurely interfering with the crypto sector. 

“Don’t touch it, don’t get near it, don’t even look at it, let it operate, let it function,” he said, arguing that overregulation could stifle innovation.

Earlier this year, Panama City approved a measure allowing residents to pay municipal taxes, fines, and permits using Bitcoin, Ethereum, USDC, and Tether. 

To comply with legal requirements, the city partnered with a bank that instantly converts crypto payments to U.S. dollars, ensuring that public institutions receive funds in fiat without handling digital assets directly.

“This allows for the free flow of crypto in the entire economy and entire government,” Mizrachi posted at the time. 

Unlike Panama’s Central American neighbor, El Salvador’s nationwide Bitcoin legal tender policy, Panama City’s model is optional and designed to be interoperable with the existing financial system.

Panama revisits crypto stance

Panama’s national stance on crypto, on the other hand, has been more cautious but has softened over time. In May 2022, former President Laurentino Cortizo refused to sign a crypto bill passed by parliament, citing the need for stronger anti-money laundering measures.

At the time, critics warned that allowing unregulated crypto transactions could impact the country’s standing, as Panama, then on the FATF grey list, faced scrutiny over its history as a tax haven and the vulnerability of its dollarized economy to illicit finance.

Those concerns, however, have since given way to a more structured approach. In March 2025, Panama introduced a new draft bill aimed at regulating digital assets while aligning with international financial standards.

The bill proposes legal recognition of crypto as a payment option with mutual consent, enforces licensing for service providers, and mandates compliance with AML and KYC norms. It also encourages the use of blockchain in public services and recognises smart contracts as legally binding.