Panama City Explores Bitcoin Reserve Following Talks with El Salvador
Panama City is considering the possibility of establishing a city-level Bitcoin reserve, following a meeting between Mayor Mayer Mizrachi and El Salvador’s top Bitcoin policy architects, Max Keiser and Stacy Herbert. The move is said to be inspired by El Salvador’s Bitcoin adoption model, which currently holds over 6,000 BTC as part of its national reserves.
On May 16, Mizrachi posted the brief but cryptic “Bitcoin Reserve” on social media, coinciding with the key talks. Notably, he is just days away from attending the Bitcoin 2025 Conference in Las Vegas, where more details about Panama’s strategic vision for digital assets are likely to be revealed.
Legal Infrastructure and Crypto Payments in Panama City
The potential announcement of a Bitcoin reserve is the next step in Panama’s financial digitization roadmap. In April 2025, the city council passed a measure allowing taxes, fees, and fines to be paid in digital assets, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and USD Coin (USDC).
Mizrachi has shared on social media that “citizens will be able to fulfill all financial obligations to the city in cryptocurrency,” as long as a fiat-to-fiat conversion system is integrated. Unlike El Salvador, where Bitcoin is legal tender, Panama is looking to partner with banks to handle the conversion, avoiding the need for new legislation.
Aiming for Green Bitcoin Mining with Hydropower
One of the main topics of the meeting between Mizrachi and the El Salvador group was sustainable Bitcoin mining. Panama’s abundance of hydropower—a similar advantage to El Salvador’s geothermal resources—makes the two countries potential hubs for clean Bitcoin mining.
“Bitcoin is reshaping Central America,” says Max Keiser. “With El Salvador’s geothermal and Panama’s hydropower, the Bitcoin revolution will have a sustainable energy base.”
With global Bitcoin mining consuming more electricity than Pakistan, Panama’s embrace of renewable energy could put it at the forefront of environmentally friendly cryptocurrency mining, according to CNN.
Strengthening financial education and cryptocurrency literacy
In addition to focusing on infrastructure and policy, Panama City is also launching digital financial education programs. According to Stacy Herbert, the city is integrating the book “What is Money”—a Bitcoin textbook from El Salvador—into its public digital library.
The initiative is part of a strategy to increase financial literacy and digital skills among its citizens, especially the younger generation. Investing in education is essential if Panama is to achieve sustained and deep cryptocurrency adoption.
Global context and challenges ahead
While El Salvador is seen as a pioneer in national Bitcoin adoption, the challenges it faces are also lessons for Panama. The strained relationship between El Salvador and the International Monetary Fund (IMF) is one example, as the latter has expressed reservations about President Bukele’s cryptocurrency policies.
The Economist noted in March 2025 that El Salvador’s Bitcoin experiment “has brought more costs than benefits,” despite optimistic statements from the government.
Panama therefore needs to be careful in balancing financial innovation and economic stability, especially as the international community closely watches policy moves related to cryptocurrencies.
Market Potential and Next Steps
The global cryptocurrency market is in a strong recovery phase. Bitcoin has set a new all-time high in 2025, while ResearchAndMarkets.com research predicts the cryptocurrency market will reach $5 billion by 2030, growing at a CAGR of 15.4%.
In the US, several states such as Arizona and New Hampshire have considered or approved state-level Bitcoin reserve plans. Panama – a regional financial hub – joining the trend could have policy spillovers across Latin America.
All eyes are now on the Bitcoin 2025 Conference, where Mayor Mizrachi is expected to reveal more details about Panama City’s plans for cryptocurrencies and Bitcoin.
Conclusion
While no official announcement has been made, signs from Panama indicate that the country is moving strongly towards financial digitization, inspired by El Salvador but developing in a unique way. With clean energy, flexible legal infrastructure and a clear educational vision, Panama is gradually shaping its position as a sustainable cryptocurrency hub in the region and globally.