Panama City, by accepting crypto payments and converting them to USD, should increase the free flow and usability of digital assets locally, but true adoption will depend on broader structural and legal integration across the national economy

Quotes that support claims

However, Mizrachi clarified that the municipal government has a legal requirement to accept these funds only in USD. It will exchange cryptoassets for cash with a partnered bank, presenting a severe limit to potential crypto adoption

Mizrachi explained that this short workaround will increase “the free flow of crypto” through Panama’s economy, but it may not be that simple. Depending on the agreement between the city government and partnered banks, it could just dump its cryptoassets on the international market. If Panama wants to actually adopt cryptocurrency, it may need more sustainable measures integrated to the local economy.