Panama City Mayor Hints at Establishing Bitcoin Reserves Following Discussion with El Salvador Leaders
Panama City Expresses Interest in Creating a City-Level Bitcoin Reserve
Interest in Bitcoin as a hedge against inflation and a tool for economic modernization is growing beyond the crypto-native community, with cities and nations exploring the role of digital assets in their financial strategies. One such city is Panama City, which has expressed its intention to create a city-level Bitcoin reserve.
Mayor Mayer Mizrachi of Panama City has publicly endorsed this initiative, calling it a "brilliant" way to promote cryptocurrency adoption. The proposal, which is awaiting consideration by the Panama Canal Authority, suggests offering Bitcoin payment discounts for Panama Canal transit fees, encouraging shipping companies to pay with Bitcoin.
The proposal, proposed by Bitcoin advisor Max Keiser, could help build a "Strategic Bitcoin Reserve" for Panama. The Panama Canal generates approximately $5 billion in annual revenue from about 13,000 to 14,000 ship crossings, and even partial Bitcoin payments could contribute significantly to this reserve.
If implemented, this reserve would strengthen Panama’s economic profile and position it as a pioneer among cryptocurrency-friendly nations. Panama introduced voluntary cryptocurrency payment rules earlier in 2025, including licensing for virtual asset service providers, indicating a government pro-crypto direction.
The initiative aligns with Panama’s broader economic strategy to attract investment and modernize financial infrastructure, despite concerns about Bitcoin’s price volatility affecting revenue stability. As of early August 2025, this plan is still under consideration by the Panama Canal Authority and has not yet been implemented.
Meanwhile, other cities and nations are also exploring the potential of digital assets. El Salvador continues to be the only country acquiring Bitcoin daily, with a total of 6,135 BTC in its sovereign reserve. Governments collectively possess more than 463,700 Bitcoin, representing approximately 2.3% of the cryptocurrency's total circulating supply.
The White House is also considering using Trump tariff funds to boost a Bitcoin reserve, and the conversation around sovereign crypto reserves is likely to intensify as more cities and nations consider the role of digital assets in their financial strategies.
However, not all governments are on board. The UK Treasury has dismissed the idea of a Bitcoin reserve, focusing instead on blockchain debt. The integration of blockchain technology into government financial frameworks reflects a growing trend worldwide, with Panama City positioned as a regional leader in cryptocurrency adoption due to this move.
In a notable turn of events, Mayor Mizrachi's post expressing support for a city-level Bitcoin reserve came just over a week before the Bitcoin 2025 conference in Las Vegas, where he is slated to deliver a speech.
Sources: [1] https://www.coindesk.com/news/panama-city-mayor-proposes-bitcoin-discounts-for-panama-canal-transit-fees [2] https://blockworks.co/panama-city-mayor-proposes-bitcoin-discounts-for-panama-canal-transit-fees/ [3] https://www.reuters.com/business/finance/panama-city-mayor-proposes-bitcoin-discounts-panama-canal-transit-fees-2021-08-04/ [4] https://www.bloomberg.com/news/articles/2021-08-04/panama-city-mayor-proposes-bitcoin-discounts-for-panama-canal-transit-fees
