Panama City mayor backs Bitcoin discounts for Panama Canal fees

By incentivizing BTC payments, Panama could transform maritime revenue and solidify its crypto innovation leadership.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Panama City Mayor Mayer Mizrachi has expressed strong support for a proposal that would allow ships to pay reduced Panama Canal fees if they settle in Bitcoin.

In an Aug. 7 post on X, Mizrachi described the idea as “brilliant” and expressed hope that the Panama Canal Authority would adopt it.

Max Keiser, an advisor to El Salvador’s President Nayib Bukele on Bitcoin matters, suggested that Panama could accumulate a substantial Bitcoin reserve by incentivizing shipping companies to pay in the flagship crypto rather than fiat.

This could create a Strategic Bitcoin Reserve, tapping into a steady influx of BTC from maritime traffic.

The Panama Canal, which connects the Atlantic and Pacific Oceans, has been a vital trade route since its opening in 1914. The link facilitates around 13,000 to 14,000 ship crossings each year and spans 82 kilometers (52 miles).

According to Keiser, the canal generates approximately $5 billion in annual revenue, which is a substantial portion of Panama’s income.

Considering this, he believes that even a partial shift to Bitcoin payments could significantly boost the country’s reserves, making it a more attractive option for international shipping.

Panama’s pro-crypto embrace

Mizrachi’s endorsement aligns with the pro-crypto nature of the Panamanian government.

Earlier this year, Panama City passed legislation to formalize the use of digital assets, allowing for voluntary cryptocurrency payments and setting regulatory guidelines for their use in financial transactions.

This includes the creation of licensing requirements for virtual asset service providers (VASPs) and adherence to international financial standards.

So, if Panama moves forward with the proposed discount program, it would mark another step in the country’s efforts to embrace cryptocurrencies and integrate Bitcoin into its economic strategy.