Panama's capital to accept cryptocurrency for tax payments: 'Partnership with banks instead of bills'

Panama City, the capital of Panama, has declared that it will officially accept cryptocurrencies as a means of paying taxes and utility bills.
Panama City is home to Bitcoin, Ethereum and Circle U.
SDC plans to accept cryptocurrencies by establishing a crypto-to-fiat payment system via Tether’s USDT and other currencies.
On the 15th (local time), Panama City Mayor Mayer Mizrachi said through X, "At the same time as the infrastructure for converting crypto assets to dollars is being established,
"In addition, citizens will be able to pay various taxes, permit fees, public transport fares, etc. with cryptocurrencies."
Mayor Mizrachi said the previous administration had promoted a similar system, but the tax revenues were always from the United States.
He previously tried to push a bill through the Senate to accept cryptocurrencies, but it was a failure because of the requirement that cryptocurrencies must be received in dollars.
"We've found an easy way to make that happen," he said. "Legally, public institutions must receive funds in dollars, so we're working with banks to process transactions in cryptocurrencies."
"The city government and banks have cooperated to make it possible to receive cryptocurrency without amending the law through a structure that allows digital assets to be immediately converted into dollars," he added.
That's the explanation.