Panama City Proposes Bitcoin Payments for Priority Passage Through Panama Canal

Panama City Mayor Mayer Mizrachi has proposed an idea that could bring Bitcoin into one of the world’s most important trade routes.

Speaking at the Bitcoin 2025 conference in Las Vegas on May 29, Mizrachi floated the possibility of allowing cargo ships to pay in Bitcoin for faster passage through the Panama Canal.

Mizrachi spoke about the proposal during a panel discussion alongside El Salvador Bitcoin advisors Max Keiser and Stacy Herbert.

AMAZING PANEL WITH MAX, STACY, MIKE, & PANAMA CITY MAYOR MIZRACHI pic.twitter.com/E5sqqHbZkJ

The session was moderated by Mike Peterson, director of Bitcoin Beach in El Salvador.

“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 is a critical shipping corridor that connects the Atlantic and Pacific Oceans. It handles around 5% of all global maritime trade and saves ships from weeks of travel around South America.

Nearly 10,000 vessels passed through the canal in the last fiscal year, transporting over 423 million tons of goods. The canal generated around $5 billion in revenue for Panama between October 2023 and September 2024, according to the Panama Canal website.

The idea of accepting Bitcoin for canal fees comes amid growing political attention on the waterway.

In December 2024, U.S. President Donald Trump proposed reclaiming control of the Panama Canal, citing concerns over Chinese influence and alleging unfair treatment of U.S. ships.

Mizrachi’s comments reflect his broader push for Bitcoin adoption in public services. He has recently advocated for creating a Bitcoin reserve for Panama City and urged lawmakers to support a more open stance on crypto.

Rather than rush into regulation, Mizrachi warned legislators to avoid interfering too soon with the growing crypto sector.

“Don’t touch it, don’t get near it, don’t even look at it, let it operate, let it function,” he said. “Then decide what it needs. Do you want to restrict it or do you want to promote it?”

The mayor also claimed that Bitcoin use in Panama is more widespread than it appears, estimating over $5 billion in annual transactions.

But much of the activity, he said, happens quietly due to fear and lack of public support.

Mizrachi’s Bitcoin-for-passage proposal is still conceptual, but it indicates Panama City’s growing interest in blockchain innovation and financial alternatives in global trade.

Following Panama City’s move to propose Bitcoin payments for priority canal passage, the city’s pro-Bitcoin stance appears to be deepening.

Mayor Mayer Mizrachi has hinted at the possibility of creating a Bitcoin reserve after meeting with Max Keiser and Stacy Herbert, two key figures behind El Salvador’s Bitcoin strategy.

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

Shortly after their May 16 meeting, Mizrachi posted “Bitcoin Reserve” on X, fueling speculation. Though no official proposal has been introduced, the timing aligns with his upcoming appearance at Bitcoin 2025 in Las Vegas.

Panama City has already made crypto history this year, allowing residents to pay taxes and municipal fees in BTC, ETH, USDT, and USDC since April.

The city instantly converts these payments into USD through a local bank.

Mizrachi has drawn comparisons to cities like Lugano and states like Colorado, signaling his ambition to align Panama City with other crypto-forward regions.

However, any move to establish a formal Bitcoin reserve would require legislative approval from the National Assembly.

Keiser noted their discussions touched on mining, financial education, and Panama’s hydroelectric potential.

Herbert added that Panama City will integrate El Salvador’s “What is Money?” Bitcoin textbook into its online public library system.

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