Panama City Mayor Mayer Mizrachi has indicated a potential move toward establishing a city-level Bitcoin reserve following discussions with key figures from El Salvador's Bitcoin policy team. On May 16, 2025, Mizrachi posted a cryptic message reading "Bitcoin Reserve" on his social media account after meeting with Max Keiser and Stacy Herbert, who have played central roles in crafting El Salvador's Bitcoin strategy. CryptoNews reports that this comes just days before Mizrachi's scheduled appearance at the Bitcoin 2025 conference in Las Vegas.

While no official details have been disclosed, the timing suggests that Panama City may be considering following El Salvador's approach to cryptocurrency adoption. The Central American nation currently holds 6,179 Bitcoin worth approximately $640 million as part of its national reserves, according to CoinTelegraph.

PANAMA'S GROWING CRYPTOCURRENCY FRAMEWORK

This potential Bitcoin reserve announcement builds upon Panama City's recent steps toward cryptocurrency adoption. In April 2025, the city council approved a measure allowing the use of digital assets for public payments, including taxes, fines, and municipal fees. CryptoSlate notes that Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and USD Coin (USDC) will be accepted once the crypto-to-fiat payment infrastructure is established.

"Citizens will now be able to pay taxes, fees, tickets and permits entirely in crypto starting with BTC, ETH, USDC, USDT," Mizrachi announced in April on his social media platform, as reported by IBTimes.

Panama City's approach differs from El Salvador's in that the city government plans to partner with a bank that will handle the conversion of cryptocurrency to fiat currency. This partnership aims to facilitate the practical implementation of crypto payments without requiring new legislation.

For a city-level Bitcoin reserve to become reality, Mizrachi would need to establish proper legislative frameworks, likely in collaboration with Panama's National Assembly. However, to date, there has been no public indication that formal legislation has been initiated.

RENEWABLE ENERGY POWERING BITCOIN INITIATIVES

A notable aspect of the discussions between Mizrachi, Keiser, and Herbert was the focus on leveraging renewable energy resources for Bitcoin mining operations. Panama's abundant hydroelectric power capacity presents a significant opportunity for sustainable cryptocurrency mining.

According to BitcoinEthereumNews, Keiser highlighted how both nations could utilize their natural resources: "Bitcoin is transforming Central America. El Salvador's geothermal & Panama's hydro-electric will power the Bitcoin revolution."

This emphasis on clean energy aligns with global concerns about cryptocurrency mining's environmental impact. CNN reports that Bitcoin mining globally consumes more energy than the entire nation of Pakistan, with consumption expected to increase 40% between 2022 and 2026.

By focusing on hydroelectric power, Panama could position itself as a leader in sustainable cryptocurrency operations. This approach mirrors El Salvador's use of geothermal energy from volcanoes to power its Bitcoin mining activities.

FINANCIAL EDUCATION AND BROADER IMPACTS

Beyond the potential reserve, Panama City is also taking steps to improve cryptocurrency education. Herbert revealed that the city plans to integrate El Salvador's "What is Money?" financial literacy textbook into its online library system, according to multiple sources.

This educational initiative reflects a long-term vision for increasing digital literacy among Panama's population, potentially setting the stage for wider cryptocurrency adoption in the future.

The move comes at a time when global cryptocurrency ownership is growing significantly. Security.org reports that approximately 28% of American adults, or about 65 million people, own cryptocurrencies in 2025, nearly double the figure from the end of 2021.

CHALLENGES AND GLOBAL CONTEXT

Despite the apparent enthusiasm for Bitcoin adoption, El Salvador's experience offers both inspiration and caution. While the country has maintained its Bitcoin holdings through market volatility, its relationship with the International Monetary Fund (IMF) has been strained over its cryptocurrency policies.

In March 2025, El Salvador's President Nayib Bukele publicly stated that the country would continue to purchase Bitcoin despite an IMF financing deal that reportedly included conditions limiting such acquisitions. Bloomberg quoted Bukele saying: "No, it's not stopping," in reference to the country's Bitcoin purchases.

Meanwhile, The Economist published an article in March 2025 suggesting that El Salvador's Bitcoin experiment "had been a failure, bringing more costs than benefits to the El Salvador economy."

Panama City may need to navigate similar international pressures and financial considerations as it explores its own cryptocurrency initiatives.

MARKET IMPLICATIONS AND FUTURE OUTLOOK

The cryptocurrency market has shown substantial growth in 2025, with Bitcoin reaching new all-time highs. According to Coinbase Institutional, "crypto markets are poised for transformative growth in 2025, continuing their momentum of maturation and adoption."

Market research from ResearchAndMarkets.com values the global cryptocurrency market at $2.1 billion in 2024, projecting growth to $5 billion by 2030 at a compound annual growth rate of 15.4%.

As Panama City considers establishing a Bitcoin reserve, it joins a growing list of government entities exploring cryptocurrency adoption. In the United States, states like Arizona and New Hampshire have already approved the creation of state-level Bitcoin reserves, according to Cryptopolitan.

Mayor Mizrachi is scheduled to speak at the upcoming Bitcoin 2025 conference, where more details about Panama City's cryptocurrency plans may emerge. The crypto community will be watching closely for announcements that could signal another significant government endorsement of Bitcoin.

RELATED READING ON BTC PEERS

Read this article on the Global Bitcoin Policy Index (GBPI)

This comprehensive resource examines how different countries are approaching Bitcoin regulation and adoption, providing valuable insights into the global cryptocurrency landscape. The GBPI offers readers a detailed analysis of policy frameworks across multiple jurisdictions, helping to contextualize Panama's potential moves within the broader international environment. It's an essential read for understanding how government policies are shaping the future of cryptocurrency adoption worldwide.