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Bitcoin, Ethereum and Two Coins Accepted: They Become the First Government to Approve! - Coin Newsletter
Panama City has made the decision to accept cryptocurrencies for taxes, fees, tickets and permits, joining the ranks of cities around the world that have taken this step.
City Mayor Mayer Mizrachi Matalon announced this step on social media platform X and stated that cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), USDC and USDT will be accepted. This step was made possible thanks to a collaboration with a bank that carried out the conversion of cryptocurrencies into US dollars without a new law being passed. Thus, the city ensured the integration of cryptocurrencies into the economy and government, while remaining compliant with legal regulations. The official currency in Panama is the US dollar.
The council voted to become the first government agency to accept crypto payments, allowing them to pay taxes, fees, tickets, and permits.
This practice is in line with previous moves made by cities such as Detroit and Colorado in the US. However, it is unclear whether cryptocurrencies are quickly accepted for tax payments. According to the latest reports from Colorado, the rate of paying taxes with cryptocurrency has remained low; A total of $57,211 worth of payments have been made in three years, while the state's annual tax revenues are in the billions of dollars.
Municipalities continue to take steps in this area to ensure that cryptocurrencies are used in government payments. Many cities are testing the integration of digital currencies into municipal services, demonstrating the potential for cryptocurrencies to be used more widely in municipal services in a rapidly digitizing world.