When Mayer Mizrachi, Mayor of Panama City, stood at the podium of the Bitcoin 2025 ConferenceLas Vegas in May 2025, he didn’t just talk about digital currency—he offered a blueprint for reshaping global trade. In a surprise announcement, Mizrachi proposed that ships transiting the Panama Canal could receive expedited passage if they pay their fees in Bitcoin. The idea, he said, isn’t just bold—it’s practical. And it’s already been brewing since a quiet meeting in Panama City last year with Max Keiser, advisor to El Salvador’s President Nayib Bukele, and Stacy Herbert, director of El Salvador’s Bitcoin Office.
A Quiet Start, Then a Public Leap
It began on May 16, 2024, with a single cryptic tweet from Mizrachi’s official X account: "Bitcoin Reserve." No context. No explanation. Just those two words. Within hours, markets twitched. Analysts scrambled. The tweet came after a closed-door panel moderated by Mike Peterson, director of Bitcoin Beach in El Salvador, where Keiser and Herbert laid out a case: Why not use the canal’s $5 billion annual revenue stream to build a national Bitcoin reserve, just as El Salvador did? The answer, they argued, was simple—offer an incentive. By April 2024, Panama City had already made history by becoming one of the first major urban centers to allow residents to pay property taxes, parking fines, public transit fares, and business permits using Bitcoin, Ethereum, Tether, and USD Coin. But unlike El Salvador’s full legal tender status, Panama City took a cautious route: all crypto payments are instantly converted to U.S. dollars via a designated financial institution, ensuring compliance with anti-money laundering rules and fiscal transparency. "We’re not chasing hype," Mizrachi told reporters after the panel. "We’re chasing efficiency."The Canal’s $5 Billion Opportunity
The Panama Canal moves 13,000 to 14,000 vessels annually—nearly 10,000 in the last fiscal year alone—carrying 423 million tons of goods. That’s $5 billion in transit fees. Even if just 5% of those payments shifted to Bitcoin, that’s $250 million in new crypto inflow. And that’s before you factor in the ripple effect: shipping companies might reroute cargo through Panama to avoid delays, boosting demand for the canal’s services. Mizrachi estimates Panama already sees over $5 billion in annual Bitcoin transactions, though most happen "quietly due to fear and lack of public support." The proposed "expedited service" model is genius in its simplicity. Imagine a container ship waiting two days to cross the canal. Now imagine paying in Bitcoin and cutting that wait to six hours. For a company spending $100,000 a day in demurrage fees, that’s a $20,000 savings. And the city? It accumulates Bitcoin without touching fiat reserves.El Salvador’s Blueprint, Amplified
El Salvador adopted Bitcoin as legal tender on September 7, 2021. Today, its national reserve holds 6,179 BTC—worth roughly $640 million as of mid-2024. The country built this reserve by buying dips, using its geothermal energy to mine sustainably, and embedding crypto into daily life. Panama doesn’t need to go that far. It doesn’t need to make Bitcoin legal tender. It just needs to make it *lucrative* for the world’s biggest shippers. "What if there were an incentive for using Bitcoin?" Mizrachi asked the Las Vegas crowd. "You could receive expedited service." The room fell silent. Then, applause. Herbert, watching from the audience, nodded. "We showed it could work in a small town," she later said. "Now Panama can show it can work on a global scale."
Infrastructure and Regulation: The Hidden Edge
Panama’s advantage isn’t just geography—it’s infrastructure. The country generates over 70% of its electricity from hydroelectric sources, making it one of the most sustainable energy grids in Latin America. That’s perfect for low-carbon Bitcoin mining operations. Unlike El Salvador, which relies on volcanoes, Panama has rivers—and the institutional capacity to scale. In early 2024, the Panama City Municipal Government passed comprehensive legislation regulating virtual asset service providers (VASPs), requiring licensing, KYC protocols, and audit trails. It’s not permissive—it’s precise. That’s what makes the proposal credible to international banks and shipping conglomerates. No one wants to deal with a regulatory gray zone. Panama’s framework is clean.What’s Next? The Clock Is Ticking
The proposal isn’t law yet. But momentum is building. The Panama Canal Authority has reportedly formed a working group to assess the technical and financial feasibility. Industry analysts say major shipping lines like Maersk and COSCO are already running internal simulations. If implemented by late 2026, the initiative could become the world’s first major cryptocurrency-powered trade corridor. "This isn’t about replacing the dollar," Mizrachi told me after his speech. "It’s about giving the market a better tool. And if the market chooses Bitcoin? Then we’ll be ready."
Why This Matters
For the first time, a major global trade artery is being positioned not just as a chokepoint of commerce—but as a node in a new financial network. If Panama succeeds, it won’t just be a Bitcoin success story. It’ll be a blueprint for how nations can leverage their strategic assets to lead in the next era of global finance.Frequently Asked Questions
How would Bitcoin payments for canal fees actually work for shipping companies?
Shipping companies would pay their transit fees directly in Bitcoin through a secure, regulated gateway operated by Panama City’s designated financial partner. The system would instantly convert the Bitcoin to U.S. dollars for the Panama Canal Authority’s books, while the ship’s operator receives priority scheduling. A blockchain-based receipt would confirm payment and unlock expedited transit slots, with all transactions auditable by regulators.
What’s the difference between Panama’s approach and El Salvador’s?
El Salvador made Bitcoin legal tender nationwide, forcing businesses to accept it. Panama City is taking a targeted, incentive-based approach—only applying crypto payments to specific services like canal fees and municipal bills. It avoids legal mandates, reduces public resistance, and lets market forces decide adoption. The goal isn’t to replace the dollar—it’s to add Bitcoin as a premium option for high-value transactions.
Could this lead to Panama building a national Bitcoin reserve?
Yes—indirectly. While the city government doesn’t hold Bitcoin itself, the Panama Canal Authority could choose to retain a portion of Bitcoin payments before conversion. If even 10% of the $5 billion annual revenue flowed as Bitcoin, that’s $500 million in potential reserve accumulation over time. This mirrors El Salvador’s strategy but on a scale that could make Panama a global crypto liquidity hub.
Why hasn’t this been tried before?
Previous attempts failed because they lacked infrastructure and regulatory clarity. Panama is the first to combine a major trade asset with a proven crypto payment system, a stable financial partner, and clear rules for VASPs. Plus, the timing is right: shipping firms are under pressure to reduce delays and carbon footprints—and Bitcoin’s volatility is stabilizing as institutional adoption grows.
How would this affect Panama’s economy beyond the canal?
Success here could trigger a wave of crypto-related investment: fintech startups, mining facilities powered by hydroelectric dams, and digital asset custody services could all spring up around the canal zone. It could turn Panama City into Latin America’s answer to Singapore—where finance, trade, and innovation converge under clear, forward-looking regulation.
Is there any opposition to this plan?
Yes. Some traditional banking interests in Panama worry about losing transaction fees. Others fear regulatory scrutiny from the U.S. Treasury or FATF. But Mizrachi’s team has already engaged with international financial regulators, and the city’s compliance framework is modeled on OECD standards. The real opposition? Skepticism. And that’s something only results can overcome.