Panama City considers Bitcoin reserve following El Salvador exchange

Panama City could soon become the next Latin American capital to embrace Bitcoin at a municipal level. In a cryptic yet impactful post on social media, Mayor Mayer Mizrachi suggested that the city may establish a Bitcoin reserve, fueling speculation about Panama's potential entry into the digital currency space.

A subtle signal with bold implications

On May 16, Mizrachi posted the phrase "Bitcoin Reserve" on X after a meeting with El Salvador’s Bitcoin advocates Max Keiser and Stacy Herbert. Although the mayor did not elaborate on the meeting’s outcome, the timing and context have raised eyebrows. Mizrachi is slated to speak at the Bitcoin 2025 conference in Las Vegas just days later, suggesting that formal announcements may be on the horizon.

Crypto already making inroads in Panama

Mizrachi’s post comes shortly after a major policy shift allowing crypto to be used for public payments in Panama City. Residents will soon be able to pay taxes, fines, and municipal fees using Bitcoin (BTC), Ether (ETH), Tether (USDT), and USD Coin (USDC), once crypto-to-fiat infrastructure is in place.

These developments position Panama City as a leading contender in the region's growing crypto adoption movement. While the establishment of a Bitcoin reserve would require legislative backing from Panama’s National Assembly, Mizrachi’s post indicates that the political will to explore such options may already be taking shape.

Learning from El Salvador’s experience

During the meeting, Mizrachi, Keiser, and Herbert reportedly discussed the role of renewable energy in supporting Bitcoin mining, with El Salvador using geothermal energy and Panama exploring its hydroelectric potential. Herbert also revealed plans to incorporate El Salvador’s Bitcoin-focused financial literacy textbook, "What is Money?", into Panama City's digital library system.

El Salvador currently holds a Bitcoin reserve of 6,179 BTC, valued at approximately $640 million. The nation has positioned itself as a pioneer in sovereign Bitcoin adoption, and its experience could serve as a roadmap for Panama City’s ambitions.

A regional shift toward digital assets

Panama is not alone in considering a Bitcoin reserve. U.S. states like Arizona and New Hampshire have passed Bitcoin reserve bills, and Ukraine is reportedly exploring similar initiatives. The Latin American region, with its history of economic instability and reliance on dollarized economies, sees growing appeal in decentralized finance.

If Panama City does follow through, it could signal a new era of crypto integration in municipal governance. The move would not only strengthen the city's financial resilience but also attract investment and innovation in blockchain technology.

What comes next?

As Panama City gears up for the Bitcoin 2025 conference, all eyes are on Mizrachi. Will he confirm the creation of a Bitcoin reserve, or is this just the beginning of broader crypto experimentation in the city? Either way, the mayor's cryptic post has already positioned Panama at the center of the region’s evolving financial narrative.

In a landscape where digital assets are quickly gaining ground, Panama City’s potential adoption of a Bitcoin reserve underscores a growing recognition of crypto as a strategic asset, not just for individuals, but for governments too.