The Panama City Council has officially sanctioned a regulation enabling residents to utilize cryptocurrencies for municipal service payments. This forward-thinking measure marks a pivotal moment in the burgeoning adoption of digital currencies across Latin America, with the municipality allowing payments in BTC, ETH, USDC, and USDT for various obligations such as taxes, fees, fines, and permits.
How Will Payments Be Processed?
Mayor Mayer Mizrachi announced the initiative via social media following the regulation’s approval. The mayor highlighted that earlier administrations sought legislative solutions in the Senate, but this plan provides a more immediate alternative. Through this initiative, cryptocurrency transactions will be swiftly converted into the local currency by a partnering bank.
Mayer Mizrachi: “The Panama City Council has voted to be the first public entity to accept cryptocurrency payments. Citizens can now use BTC, ETH, USDC, and USDT for various municipal obligations.”
This initiative underscores the local government’s commitment to embracing technological advancements in everyday financial transactions for its citizens.
What Are the Implementation Steps?
To facilitate this new payment method, the city will collaborate with a certified bank, which will ensure prompt conversion of cryptocurrencies into local currency. This approach is designed to streamline processes and avoid the lengthy legislative procedures typically required.
Municipal officials revealed that a collaboration agreement is nearing completion, with the aim for the system to become operational soon. The new payment method is expected to enhance the ease with which citizens can engage with city services in a digital landscape.
Mayer Mizrachi: “Previous administrations tried to pass legislation in the Senate, but we opted for a more practical method.”
These comments suggest the initiative was crafted to effectively navigate existing legal frameworks.
By implementing this system, the local government aims to undertake a significant leap in digital transformation, potentially increasing transparency and simplifying payment transactions. This advancement could also bolster the technological capabilities of public services.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/panama-city-introduces-crypto-payments-for-services