Panama City Mayor Proposes Bitcoin Payments for Faster Canal Transit
Panama City’s mayor, Mayer Mizrachi, proposed a plan at the Bitcoin 2025 conference to allow cargo ships to expedite their transit through the Panama Canal by paying tolls in Bitcoin.
Bitcoin Payments For Priority Passage
Mizrachi suggested that ships could "cut the line" for quicker passage if they paid in Bitcoin. This idea aims to reward early adopters and raises questions about integrating fast payments into existing shipping processes.
Questions Over Fees And Fairness
- The current system operates on a first-come, first-served basis, requiring approval from the Panama Canal Authority and the national government for changes.
- Concerns exist that smaller shipping companies may be disadvantaged by any new fee structure.
- US President Donald Trump previously criticized tolls, indicating sensitivity around potential changes to canal operations.
Handling A $5 Billion Business
The Panama Canal generated about $5 billion in revenue between October 2023 and September 2024, with nearly 10,000 ships passing through. If Bitcoin payments were adopted, a mechanism would be needed to manage price volatility.
A Push For City-Level Crypto
- Mizrachi supports allowing payments for city fees in Bitcoin, Ether, and USDC.
- He proposed establishing a Bitcoin reserve for Panama City, which contributes over half of the nation's GDP.
- Implementation depends on support from national lawmakers.
- Mizrachi claims over $5 billion in Bitcoin transactions occur annually in Panama, much of it undisclosed.