Imagine paying Bitcoin to skip the queue at one of the planet’s most vital trade routes. Panama City’s mayor, Mayer Mizrachi, just proposed exactly that. Speaking at the Bitcoin 2025 conference, he unveiled a bold vision. Ships could pay canal transit fees using Bitcoin. Consequently, they might gain priority passage through the Panama Canal. Mizrachi pitched the idea during a panel discussion. He suggested rewarding Bitcoin payments with faster transit. “We have a canal,” Mizrachi stated clearly. “What if you get a perk for paying in Bitcoin? Get your ship to go quicker.” This perk translates to potentially “cutting the line.” Ships paying in Bitcoin could bypass standard queues. Therefore, it offers a significant speed advantage.
A Global Trade Lifeline
The Panama Canal is indispensable for world commerce. It directly links the Caribbean and Pacific Oceans. This shortcut is a cornerstone of global shipping. Recent figures show its massive scale. Nearly 10,000 ship transits occurred between October 2023 and September 2024. This traffic moved an astounding 423 million tons of cargo. Ultimately, it represents roughly 5% of all maritime trade globally. Revenue generated is equally impressive. Official data confirms Panama earned nearly $5 billion. This income came solely from canal operations during that period. The canal’s annual transit business is valued around $3.5 billion. However, traditional payment methods often cause delays. Bank transfers can take up to 72 hours to clear. Mizrachi’s Bitcoin plan aims to streamline this process dramatically.
Panama City’s Crypto Push
Mayor Mizrachi is no stranger to digital currency advocacy. He actively champions Bitcoin and other cryptocurrencies. His focus includes integrating them into public services. Recently, Panama City approved a significant measure. Residents can now pay municipal taxes, fines, and permits using crypto. Accepted currencies include Bitcoin, Ethereum, USDC, and Tether. Crucially, the city partnered with a bank for compliance. This bank instantly converts crypto payments to U.S. dollars. Public institutions receive funds in traditional fiat currency. They never handle digital assets directly. “This allows for the free flow of crypto,” Mizrachi previously declared. Furthermore, he proposed creating a Bitcoin reserve for Panama City. The city generates over half of Panama’s total domestic product.
Hands-Off Approach
Mizrachi strongly cautioned lawmakers against heavy-handed regulation. He urged them not to stifle the emerging crypto sector prematurely. “Don’t touch it, don’t get near it, don’t even look at it,” he emphasized on stage. His message was clear: “Let it operate, let it function.” He firmly believes overregulation kills innovation. The mayor estimates substantial existing crypto activity. He claims over $5 billion in Bitcoin transactions happen yearly in Panama. Much of this activity remains informal currently. Business operators often fear regulatory backlash. Mizrachi’s proposed model differs from El Salvador’s nationwide mandate. Instead, Panama City’s approach is entirely optional. It aims for seamless interoperability with existing financial systems.
National Crypto Evolution
Panama’s national government initially displayed more caution towards crypto. Its stance, however, has gradually softened. Back in May 2022, former President Laurentino Cortizo refused to sign a parliamentary crypto bill. He demanded stronger anti-money laundering safeguards first. Critics voiced serious concerns then. Panama was on the FATF financial grey list. Its history as a tax haven raised red flags. Experts worried about illicit finance risks to its dollarised economy. Those fears have since subsided significantly. Panama adopted a more structured regulatory path. In March 2025, it introduced a new draft bill. This legislation aims to properly regulate digital assets. Simultaneously, it aligns with international financial standards. The bill grants legal recognition to crypto as a payment option. Crucially, this requires mutual consent between parties.
Implementation
Making the Bitcoin canal payments real requires specific steps. Partnerships with crypto payment processors are essential. These firms would handle real-time conversion to fiat currency. The mayor’s office has projected a timeline. They believe the necessary infrastructure could be ready within 18 months. Naturally, this hinges on approval from Panama’s National Assembly. The proposal draws inspiration from El Salvador’s Bitcoin strategy. Mizrachi held discussions with Salvadoran Bitcoin leaders Max Keiser and Stacy Herbert. Market analysts see significant potential upside. Essentially, Bitcoin becomes a tool for global logistics efficiency. Mizrachi’s plan positions Panama City at crypto’s innovative forefront. It leverages a unique global asset for potential financial advantage. The world’s shipping industry now watches closely.
Written By Fazal Ul Vahab C H
