Panama City Mayor Proposes Bitcoin Payments for Priority Canal Passage

Groundbreaking initiative could revolutionize maritime commerce through world’s most strategic shipping corridor

Panama City Mayor Mayer Mizrachi has announced a revolutionary proposal that could fundamentally transform international shipping operations at one of the world’s most critical trade routes. Speaking at the Bitcoin 2025 conference in Las Vegas on May 29, Mizrachi unveiled plans to allow cargo vessels to pay transit fees in Bitcoin in exchange for expedited passage through the Panama Canal.

The unprecedented initiative represents the most ambitious attempt to date to integrate cryptocurrency into essential global trade infrastructure. Under the proposed system, shipping companies would have the option to pay canal transit fees using Bitcoin to receive priority access, potentially reducing costly delays that can extend for days during peak traffic periods.

“We have a canal—what if you get a perk for paying in Bitcoin? You can get your ship to go quicker if you pay in Bitcoin,” Mizrachi explained during a high-profile panel discussion that featured prominent El Salvador Bitcoin advisors Max Keiser and Stacy Herbert. The session was moderated by Mike Peterson, director of Bitcoin Beach in El Salvador, highlighting growing regional cooperation on cryptocurrency adoption throughout Central America.

The Panama Canal’s Critical Role in Global Commerce

The Panama Canal stands as one of the most vital arteries of international trade, connecting the Atlantic and Pacific Oceans across the narrow Isthmus of Panama. This 50-mile engineering marvel facilitates approximately 5% of global maritime commerce, enabling efficient movement of goods between Eastern and Western markets while saving cargo ships weeks of travel time they would otherwise spend navigating around the southern tip of South America.

The canal’s economic significance cannot be overstated. During the fiscal year ending September 2024, nearly 10,000 vessels transited the waterway, transporting over 423 million tons of cargo valued in the trillions of dollars. These operations generated approximately $5 billion in revenue for Panama, demonstrating the canal’s massive contribution to the nation’s economy and global supply chain efficiency.

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Currently, shipping companies face substantial operational costs during congested periods when vessels must wait extended periods for passage. These delays create cascading effects throughout international supply chains, disrupting delivery schedules and increasing transportation costs. The waiting times can be particularly challenging during peak seasons when dozens of ships queue for transit, making Mizrachi’s proposal especially attractive to the maritime industry seeking more predictable and efficient passage options.

Panama City’s Comprehensive Digital Asset Strategy

Mizrachi’s canal proposal represents a key component of an ambitious cryptocurrency integration strategy that has positioned Panama City as a pioneer in municipal digital asset adoption. Earlier in 2025, the city implemented groundbreaking legislation allowing residents and businesses to pay municipal taxes, fines, and fees using Bitcoin, Ethereum, USDC, and Tether.

To ensure regulatory compliance and operational efficiency, Panama City established a partnership with a local banking institution that instantly converts cryptocurrency payments to U.S. dollars. This innovative arrangement enables public institutions to receive traditional fiat currency without directly handling digital assets, addressing regulatory concerns while embracing technological innovation.

The mayor has also advocated for creating a dedicated Bitcoin reserve for Panama City, drawing inspiration from El Salvador’s historic decision to adopt Bitcoin as legal tender. Mizrachi emphasized that such municipal-level initiatives can be implemented without requiring national legislative approval, allowing cities to move more rapidly than national governments on cryptocurrency integration and position themselves as leaders in digital innovation.

“Don’t touch it, don’t get near it, don’t even look at it,” Mizrachi warned lawmakers regarding premature cryptocurrency regulation. “Let it operate, let it function. Then decide what it needs. Do you want to restrict it or do you want to promote it?” This hands-off approach reflects his belief that cryptocurrency should be allowed to develop organically before imposing restrictive regulations.

Economic Impact and Cryptocurrency Market Dynamics

Mayor Mizrachi estimates that Panama already processes over $5 billion in Bitcoin transactions annually, though much of this activity remains hidden due to regulatory uncertainty and social concerns surrounding cryptocurrency use. Official adoption of Bitcoin for canal operations could encourage greater transparency and broader utilization of digital assets in legitimate commercial activities throughout the region.

Financial analysts suggest that successful implementation could generate multiple benefits for both Panama’s economy and the global shipping industry. Reduced waiting times would significantly improve maritime trade efficiency, creating substantial cost savings for shipping companies that currently face expensive delays during peak traffic periods. These savings could ultimately benefit consumers through reduced transportation costs for goods.

The proposal capitalizes on Bitcoin’s inherent advantages for international commerce. Cryptocurrency transactions are instantaneous, globally accessible, and transparent, characteristics that align perfectly with the dynamic requirements of the maritime sector. Additionally, Bitcoin’s decentralized architecture could reduce dependence on traditional banking intermediaries, potentially simplifying cross-border payment processes and reducing transaction costs for shipping companies operating across multiple jurisdictions and regulatory frameworks.

Political Context and International Considerations

The Bitcoin payment proposal emerges during a period of heightened political attention on Panama Canal operations and control. In December 2024, U.S. President Donald Trump publicly demanded that the United States reclaim control of the waterway, criticizing the current toll system and alleging that American ships face discriminatory treatment compared to vessels from other nations.

Trump also expressed significant concerns about China’s growing influence over canal operations, arguing that this development poses threats to American strategic interests in the region. Within this complex geopolitical environment, Mizrachi’s Bitcoin proposal could be interpreted as an innovative attempt to modernize canal operations while maintaining Panama’s sovereignty over this critical infrastructure asset.

The mayor’s collaboration with El Salvador’s Bitcoin advocates demonstrates growing regional cooperation on cryptocurrency adoption throughout Central America. El Salvador’s pioneering experience as the first nation to adopt Bitcoin as legal tender provides valuable precedents and practical lessons for Panama’s implementation strategy, including insights into regulatory frameworks, technical infrastructure requirements, public education initiatives, and potential economic impacts.

Implementation Challenges and Regulatory Considerations

Despite its innovative potential, the proposal faces significant obstacles that could complicate practical implementation. The Panama Canal operates under complex international treaties that mandate equal access for all nations, and any modifications to payment structures would require careful legal review to ensure compliance with existing international agreements governing maritime commerce and trade.

Technical infrastructure development presents another substantial challenge. The canal authority would need to implement secure Bitcoin payment systems while maintaining robust verification and monitoring capabilities to prevent fraud, money laundering, or other illicit activities. This would require considerable investment in advanced technology, cybersecurity measures, and specialized personnel training.

Port operators, administrative staff, and regulatory officials would require comprehensive education on cryptocurrency operations to effectively manage Bitcoin transactions alongside traditional payment methods. Without adequate preparation and support systems, the innovation risks remaining confined to theoretical discussions rather than achieving practical implementation.

Future Implications and Global Precedent

If successfully implemented, Panama’s Bitcoin payment system could establish a crucial precedent for cryptocurrency integration in other major infrastructure projects worldwide. The initiative would significantly enhance Bitcoin’s legitimacy among institutional users and could accelerate adoption across various sectors of the global economy, from transportation and logistics to energy and telecommunications.

The proposal reflects broader trends toward digitalization in international commerce, where traditional banking systems often create inefficiencies and delays in cross-border transactions. Bitcoin’s blockchain technology could address many of these systemic issues while providing greater transparency, reduced transaction costs, and faster settlement times for international business operations.

As discussions surrounding the proposal continue, stakeholders must carefully balance potential benefits against the complexities of modifying established maritime protocols that have governed international shipping for decades. Success would require unprecedented cooperation between cryptocurrency advocates, shipping industry leaders, international regulatory bodies, and government officials at multiple levels. The coming months will reveal whether this ambitious vision can overcome regulatory challenges and technical obstacles to become operational reality, potentially marking a pivotal moment in the evolution of digital finance and international trade.