Panama City Mayor suggests canal passage benefits through Bitcoin settlement | Challenges and possibilities towards realization

Table of Contents* 1. Proposal for Bitcoin Settlement Incentives at the Panama Canal

• 2. The issue of waiting for passage through the Panama Canal and solutions through BTC Settlement
• 3. Accelerating Cryptocurrency Utilization Policies in Panama

• 3.1. Introducing cryptocurrency for utility bill payments
• 3.2. Review of Cryptocurrency Policies Advancing with Regime Change

• 4. The feasibility of the Panama Canal Bitcoin preferential proposal

A proposal for preferential Bitcoin Settlement in the Panama Canal has emerged

On May 30, 2025, Mayor Mayer Mizrachi of Panama City spoke at the cryptocurrency event "Bitcoin 2025" held in Las Vegas, USA, mentioning the possibility of a new transit system using Bitcoin Settlement at the Panama Canal.

Mayor Mizurachi stated during the panel discussion that "it might be good for ships that pay the toll for the Panama Canal with Bitcoin (BTC) to have the benefit of a higher priority passage," suggesting the consideration of a priority passage system utilizing cryptocurrency.

Although this statement is still in the conceptual stage, attention is being drawn to the possibility of the Panama Canal, a global logistics hub, adopting Bitcoin Settlement, making it a significant topic not only in the cryptocurrency industry but also in the international logistics sector.

The Waiting Problem at the Panama Canal and Solutions through BTC Settlement

Currently, the passage procedures for the Panama Canal are conducted on a first-come, first-served basis, and any changes to the rules require approval from the Panama Canal Authority and the national government.

However, in the Panama Canal, the number of vessels that can pass through has been restricted due to recent drought impacts, leading to a prolonged waiting time for vessels.

In August 2023, there were reports of a major European shipping company paying an additional fee of approximately $2.4 million (around ¥350 million) to obtain priority passage, in addition to the regular toll of about $400,000 (around ¥58 million).

Against this backdrop, the proposal for priority passage using Bitcoin Settlement is attracting attention as a new initiative in the shipping industry due to its clear advantage of reducing waiting times.

Mayor Mizurachi mentioned the possibility of institutionalizing Bitcoin Settlement adoption as a system where companies that adopt it early can prioritize access.

However, it has been pointed out that the introduction of preferential passage measures may bring disadvantages to small and medium-sized shipping companies, and caution is required in the design of the system.

In 2024, U.S. President Donald Trump mentioned the return of control over the Panama Canal, stating that "unfair tolls are being imposed on U.S. vessels," and the fairness of toll setting and operational rules is being watched internationally by governments and the shipping industry, starting with the United States.

Accelerating Cryptocurrency Utilization Policies in Panama

Introducing cryptocurrency for utility payments

Panama City has shown a proactive stance towards the adoption of virtual currency, and on April 16, 2025, the city council unanimously passed a bill to allow the use of virtual currency for tax and public utility payments.

As a result, Panama City has become the first municipality in the country to officially introduce virtual currency settlement for public service payments.

Mayor Mizurachi explained on his X (formerly Twitter) that the cryptocurrency settlement system can utilize Bitcoin, Ethereum (ETH), and also USD Coin (USDC) and Tether (USDT), which are pegged to the US dollar.

The mayor has also revealed that he is scheduled to sign a formal contract regarding the introduction of cryptocurrency Settlement with local financial institutions at a blockchain-related conference held in late the same month.

The change of government advances the review of cryptocurrency policy.

At the national level, Panama is accelerating the development of its cryptocurrency policies.

In March 2025, a new bill was submitted to the National Assembly that officially recognizes payments made with virtual currencies and introduces blockchain technology into administrative services.

This bill, which was passed in 2022, was rejected by then-President Laurentino Cortizo on the grounds of "disruption of administrative order" and "insufficiency in anti-money laundering measures," and was revised based on Bill No. 697, which received a ruling of unconstitutionality from the Supreme Court in 2023.

Under the presidency of José Raúl Murillo, who took office after the political transition in 2024, the new bill includes strict anti-money laundering measures in accordance with the guidelines of the FATF (Financial Action Task Force).

Through the collaboration between the parliament and the new administration, progress is being made in addressing the issues pointed out in previous bills, and Panama aims to become the second cryptocurrency nation after El Salvador, strengthening its promotion of cryptocurrency and blockchain policies at the national level.

Feasibility of the Panama Canal Bitcoin Preferential Plan

The proposal by Mayor Mizurachi for priority passage through the Panama Canal using Bitcoin Settlement has an advanced perspective on the use of digital currency as national infrastructure.

On the other hand, there are several challenges associated with its introduction, so it remains at the conceptual stage at this point.

In order to officially adopt it as a system, the resolution of specific issues such as Bitcoin price volatility risk, discussions and consensus building with the Panama Canal Authority and national governments, and the creation of fair rules considering the impact on small and medium-sized shipping companies is required.

The introduction of Bitcoin Settlement at the Panama Canal could not only diversify payment methods but also significantly contribute to the efficiency of international logistics and the improvement of revenue from canal operations.

In the future, attention will be focused on whether concrete discussions towards the introduction of Bitcoin Settlement in the Panama Canal will progress alongside the resolution of these issues.

*The price is converted at the rate at the time of writing (1 USD = 144.28 JPY)

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Source: Bitcoin 2025

Writing and Translation: BITTIMES Editorial Department

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