Mayer Mizrachi, mayor of the capital of Panama, recently discussed the positive transformative impacts of Bitcoin on his country during a large conference. He proposed to accept BTC payments as a price to use the Panama Canal among other growth strategies.
In the end, the office of a mayor is not able to transform the economic perspectives of a nation. However, Mizrachi has shown concrete ways that small acts of adoption of Bitcoin can rely on each other.
Mizrachi brings Bitcoin to Panama
In recent years, Panama has made several attempts to reform its Bitcoin policies, but these efforts have stopped several times.
However, Mayer Mizrachi, the mayor of Panama City, tried to innovate again. Like El Salvador, Panama is a nation that uses the US dollar as a legal call. Mizrachi detailed a new approach to change this:
“What we have created was a roadmap for the way cities can adopt Bitcoin, regardless of national law. You can build the construction blocks, so that the central government can copy what you do after being proven. 70% of [Panama’s] GDP is in my city. Whatever my city is, that makes waves across the country, “said Mizrachi.
Mizrachi spoke of his initial plan to accept Bitcoin for municipal tax payments. In some respects, this strategy had major limits, because the city had to exchange all this BTC for the USD. It was a springboard for the biggest banks in Panama who need to treat Bitcoin.
Already, Mizrachi has advised other mayors in the region how they can start similar initiatives. This limited project was an easy way to transform the whole Bitcoin ecosystem of Panama from the limits of the office of a mayor.
However, Mizrachi has recognized that global adoption will require much more political membership. He commented that BTC could be used hypothetically to accept price payments via the Panama Canal, but the United States could oppose this plan.
In other words, the integration of the Panama BTC is based on a key factor: an active challenge ecosystem. Mizrachi congratulated Nayib Bukele, who transformed El’s Salvador into one of the biggest Bitcoin holders in the world.
Panama could also start to accumulate a Bitcoin strategic reserve, but more importantly, it must establish links with other regional cryptography supporters.
That is to say that the mayor of Panama City does not have the power to change the position of Bitcoin by himself. However, Mizrachi considers his work as proof of concept.
He detailed the economic opportunities that crypto can bring to Central America and reminded us that better future is possible. Dedicated defenders can create a powerful change with smaller actions.
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