The Mayor of Panama City, Mayer Mizrachi, has introduced a bold initiative that could revolutionize transactions along one of the globe’s key maritime routes by incorporating Bitcoin.
During his address at the Bitcoin 2025 conference in Las Vegas on May 29, Mizrachi discussed the prospect of allowing cargo vessels to pay tolls in Bitcoin for expedited passage through the Panama Canal.
Mayor Proposes Bitcoin for Priority Passage Through Canal
The proposal was presented in a panel discussion which also featured Bitcoin advisors from El Salvador, Max Keiser and Stacy Herbert. The session was moderated by Mike Peterson, director of Bitcoin Beach in El Salvador.
AMAZING PANEL WITH MAX, STACY, MIKE, & PANAMA CITY MAYOR MIZRACHI pic.twitter.com/E5sqqHbZkJ
— The Bitcoin Conference (@TheBitcoinConf) May 29, 2025
Mizrachi posited, “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?”
The Panama Canal serves as a vital shipping lane, linking the Atlantic and Pacific Oceans. It accounts for approximately 5% of global maritime trade, significantly reducing travel time for vessels that would otherwise have to navigate around South America.
In the last fiscal year, nearly 10,000 ships traversed the canal, carrying upwards of 423 million tons of cargo. The canal generated around $5 billion in revenue for Panama from October 2023 to September 2024, as reported by the Panama Canal administration.
Mizrachi’s Bitcoin payment proposal comes amid rising political scrutiny focused on the strategic waterway.
In December 2024, former U.S. President Donald Trump suggested reclaiming U.S. control over the Panama Canal, expressing concerns regarding Chinese influence and alleged inequitable treatment of U.S. vessels.
The mayor’s remarks underscore a larger agenda to bolster Bitcoin’s role in public services. Mizrachi has advocated for establishing a Bitcoin reserve for Panama City and has called on legislators to adopt a more accommodating attitude towards cryptocurrency.
Advising caution on regulation, Mizrachi stated, “Don’t touch it, don’t get near it, don’t even look at it, let it operate, let it function. Then decide what it needs. Do you want to restrict it or do you want to promote it?”
The mayor also suggested that Bitcoin transactions in Panama could exceed $5 billion annually, though much of this economic activity remains undercover due to apprehensions and insufficient public backing.
While Mizrachi’s idea for Bitcoin-based canal passage remains in the conceptual stage, it signifies Panama City’s increasing engagement with blockchain innovation and diverse financial solutions in global commerce.
Strengthening Bonds with El Salvador Through Bitcoin
In light of the new proposal for Bitcoin payments in canal transactions, Panama City’s favorable stance towards cryptocurrency appears to be solidifying.
Mayor Mayer Mizrachi has indicated a potential Bitcoin reserve creation after engaging with key architects of El Salvador’s Bitcoin approach, Max Keiser and Stacy Herbert.
Panama City Mayor @Mayer has sparked speculation about creating a Bitcoin reserve after meeting with two of El Salvador’s Bitcoin strategists.#Panama #Bitcoinhttps://t.co/rNM6EM37pz
— Finance Newso.com (@Finance Newso) May 17, 2025
Following their meeting on May 16, Mizrachi shared a post on social media simply stating “Bitcoin Reserve,” stirring further speculation. Although no formal proposal has yet been presented, his comments coincide with his participation in the Bitcoin 2025 event.
Panama City has already made strides in the cryptocurrency landscape, enabling residents to pay taxes and municipal fees in Bitcoin, Ethereum, USDT, and USDC since April. These payments are automatically converted to U.S. dollars through a local banking partner.
Mizrachi has drawn parallels to progressive cities such as Lugano and states like Colorado, aiming to position Panama City as a leader among crypto-adopting regions.
However, the establishment of a formal Bitcoin reserve would need the endorsement of Panama’s National Assembly.
Keiser remarked that their discussions included topics like mining, financial literacy, and Panama’s capacity for hydroelectric power generation. Herbert noted that Panama City plans to incorporate El Salvador’s “What is Money?” Bitcoin textbook into its public library’s online resources.
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