Panama City has become a trailblazer by allowing residents to pay taxes fees tickets and permits using Bitcoin Ether and stablecoins. This decision follows a city council vote announced by Mayor Mayer Mizrachi Matalon on X. Panama City is now the first public institution in the country to accept digital assets for government transactions.

The initiative will initially support Bitcoin Ether USDT and USDC. It will be implemented through a partnership with a bank that converts crypto payments into dollars at the time of transaction ensuring compliance with the country’s legal tender laws. Mayor Matalon emphasized that this move enables the free flow of cryptocurrency within the entire economy and government.

This move comes as Panama’s National Assembly is considering legislation that would establish a regulatory framework for cryptocurrencies. A draft bill earlier this year sought to legalize voluntary crypto payments and promote the digital economy while incorporating blockchain technology into governance and civil transactions.