The Mayor of Panama City, Mayer Mizrachi, is a vocal supporter of a novel plan. This plan suggests offering discounted Panama Canal fees to shipping companies who choose to pay using Bitcoin.
Mizrachi enthusiastically endorsed the concept as “brilliant” in an X post dated August 7. He hopes the Panama Canal Authority will seriously consider implementing it.
Max Keiser, who serves as an advisor on Bitcoin matters to El Salvador’s President Nayib Bukele, proposed that Panama could build a significant Bitcoin reserve. This could be achieved by encouraging maritime companies to make payments in the leading cryptocurrency instead of traditional currencies.
The idea is that this would establish a Strategic Bitcoin Reserve, fueled by a constant stream of Bitcoin coming from the traffic of ships.
Since its inauguration in 1914, the Panama Canal has been a key international shipping lane, bridging the Atlantic and Pacific Oceans. Each year, roughly 13,000 to 14,000 vessels navigate the 82-kilometer (52-mile) waterway.
Keiser estimates that the canal generates approximately $5 billion in revenue annually, representing a substantial portion of Panama’s overall economic income.
Therefore, he argues that even a partial adoption of Bitcoin payments could substantially increase the nation’s Bitcoin holdings, making it a more appealing option for global shipping businesses.
Panama Showing Support for Crypto
Mizrachi’s support reflects the Panamanian government’s generally favorable view toward cryptocurrencies.
Earlier this year, the city of Panama enacted legislation to officially recognize digital asset usage, permit optional cryptocurrency transactions, and establish regulatory standards for cryptocurrency usage in financial activities.
The rules encompass the creation of virtual asset service provider (VASP) licensing requirements and dedication to adhering to international financial compliance.
Consequently, if Panama chooses to proceed with the proposed discount initiative, it would represent another advancement in the nation’s attempts to embrace cryptocurrencies and incorporate Bitcoin into its overarching economic plan.