Panama City Considers Bitcoin Reserve After Mayor’s Meeting with El Salvador Advisors

Highlights:

• Panama City may launch a Bitcoin reserve after Mizrachi met El Salvador’s top Bitcoin policy advisors.
• Panama City has not introduced any bills to support the speculated reserve.
• The city will also introduce an educational program as it prepares for the reserve.

A recent post on X by Panama City Mayor Mayer Mizrachi has sparked hopes for the creation of a Bitcoin Reserve in the city. The post follows his meeting with Max Keiser and Stacy Herbert. The former serves as an advisor to the President of El Salvador, while the latter leads the Bitcoin Office of the country.

Panama City mayor hints at municipal Bitcoin reserve

Panama City Mayor Mayer Mizrachi has suggested the city may establish its own Bitcoin $BTC reserve following a meeting with key Bitcoin policymakers from El Salvador, according to Cointelegraph.

On May 16, after meeting with…

— CoinNess Global (@CoinnessGL) May 17, 2025

The work of the two officials has guided El Salvador’s Bitcoin strategy, which includes a national Bitcoin reserve. El Salvador now holds 6,179 BTC, valued at approximately $640 million. Although Mizrachi has not revealed details of their talks, the public post has drawn interest from the crypto sector.

Despite the speculation, the city has not introduced any legislation tied to a Bitcoin reserve. Any such move would require action through Panama’s National Assembly. At present, there is no evidence that legal steps have begun. However, the meeting points to a growing interest in adopting a Bitcoin reserve policy at the city level.

Bitcoin Reserve Outlook Grows as Panama City Approves Crypto Payments

The likelihood of building a Bitcoin reserve has increased since Panama City embraced new forms of payment. Panama City recently authorized accepting cryptocurrency for taxes, fees, permits and fines. People in the city can pay for government services with Bitcoin, Ethereum, USDC or USDT. The city uses the local banking system to convert virtual assets to U.S. dollars during payments. This allowed the new system without requiring changes in national laws.

The U.S. dollar remains Panama’s legal tender, so the city avoided legal conflicts. The system processes crypto payments and immediately changes them into dollars. Mizrachi said the setup required cooperation with a banking partner, not new legislation.

These new policies may support plans for a future Bitcoin reserve. Using Bitcoin for public services lays the foundation for deeper digital finance use. The approach could help the city more efficiently handle its Bitcoin holdings. Gaining access to Bitcoin could provide the city with a wider range of financial opportunities.

Panama Introduces Bitcoin Education Program

The city of Panama is working to ensure the expansion of education that prepares its population for the development of a Bitcoin reserve. The city plans to include the “What is Money?” textbook from El Salvador in its online libraries. The textbook provides an overview of Bitcoin and financial fundamentals to both students and educators. The initiative could improve public understanding of a potential Bitcoin reserve in Panama.

Panama City to introduce El Salvador’s “What is Money” financial literacy schoolbooks to their new digital libraries.

A regional Central American bitcoin block is emerging!

🇸🇻🤝🇵🇦 pic.twitter.com/7Ra2RvDdsG

— Stacy Herbert 🇸🇻🚀 (@stacyherbert) May 15, 2025

Keiser noted that Panama’s hydroelectric power could aid Bitcoin mining, similar to El Salvador’s geothermal projects. The two countries discussed using renewable energy to support a Bitcoin reserve plan. These resources can support the infrastructure needed for Bitcoin development. They also reduce energy costs linked to digital mining.

Interest in Bitcoin reserves has grown in other countries. Two states in the U.S., Arizona and New Hampshire, have passed bills this month that aim to create Bitcoin reserves. According to media reports, Ukraine may include Bitcoin in its national reserves. Panama City’s steps show it may follow this wider global direction.