Panama City’s deal with Towerbank, signed on April 24, 2025, allows municipal payments in Bitcoin, Ethereum, USD Coin, and Tether, marking a historic first for a Panamanian public institution, as confirmed by Bitcoin Magazine and The Crypto Basic.
The agreement involves instant conversion of crypto to USD to mitigate volatility, a strategy mirroring Colorado’s 2022 tax payment system, reflecting a growing global trend in municipal crypto adoption.
This move positions Panama City as a digital finance hub in Latin America, leveraging its dollarized economy and banking system, despite the country’s historically passive crypto regulation stance, as noted in Freeman Law’s 2023 analysis.
