In a tantalizing hint at potentially transformative economic policy, Panama City Mayor Mayer Mizrachi has sparked speculation about the creation of a city-level Bitcoin reserve. This comes after his recent meeting with noted Bitcoin advocates Max Keiser and Stacy Herbert from El Salvador. Mizrachi left the crypto community buzzing with his succinct post on X on May 16, simply stating, “Bitcoin Reserve.”
Panama City’s Digital Vision
The prospect of a Bitcoin reserve in Panama City aligns with the region’s broader embrace of cryptocurrencies. Mizrachi’s cryptic message arrives on the heels of Panama’s legislative approval to use crypto for public payments, including taxes and municipal fees. Although details remain nebulous, the initiative would initially support Bitcoin (BTC), Ether (ETH), Tether (USDT), and USDC (USDC).
The move is seen as a strategic pivot to leverage digital currencies for economic resilience and modernization. “What Panama City aims to achieve could be revolutionary,” commented financial analyst Laura Gonzalez. “If executed well, it might set a precedent for other cities in the region.” This follows a pattern of institutional adoption, which we detailed in Metaplanet’s strategy to grow its Bitcoin reserve.
Conversations with El Salvador’s Crypto Pioneers
While Mizrachi has not disclosed specifics of his discussions with Keiser and Herbert, it is known that their dialogue touched on renewable energy use in Bitcoin mining, a sector both Panama and El Salvador are keen to develop. Keiser, a prominent figure in El Salvador’s Bitcoin community, emphasized the transformational potential of harnessing the region’s natural resources for sustainable crypto mining. “Bitcoin is transforming Central America,” he declared, underscoring the synergy between geothermal and hydro-electric power in El Salvador and Panama, respectively, to fuel the Bitcoin ecosystem.
Additionally, Panama City plans to adopt El Salvador’s financial literacy textbook, “What is Money?”, into its educational resources, signifying a commitment to fostering a crypto-aware populace.
A Broader Context and Implications
Mizrachi’s musings on a Bitcoin reserve come at a time when Bitcoin reserves are gaining traction globally. U.S. states like Arizona and New Hampshire have recently passed Bitcoin reserve bills, and Ukraine is reportedly contemplating similar measures. However, for Mizrachi’s vision to translate into reality, it would require legislative support from Panama’s National Assembly—a hurdle that remains unaddressed. For a deeper dive into the regulatory implications, see our coverage of Metaplanet’s plans to raise $250M for Bitcoin strategy.
The potential establishment of a Bitcoin reserve could bolster Panama City’s economic standing, offering a hedge against fiat currency volatility and aligning with global trends of digital currency adoption. Yet, questions remain about the feasibility and timing of such an initiative, particularly in the absence of clear legislative backing.
Looking Ahead
As the world awaits further announcements, all eyes will turn to the Bitcoin 2025 conference in Las Vegas, set for later this month, where Mizrachi is expected to provide more clarity on his plans. Whether Panama City will indeed take a leap into the crypto frontier and establish a Bitcoin reserve remains to be seen.
This development raises intriguing questions about the future of municipal financial strategies and the role of cryptocurrencies in global economies. Will Panama City pave the way for other cities to follow? The crypto community—and the world—will be watching closely.
Source
This article is based on: Panama City mayor teases Bitcoin reserve after meeting El Salvador's Bitcoin leaders
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
