Panama Mayor Mizrachi has expressed strong support for the proposal that will allow the ship to pay the Panama Canal cut-off fee if it settles in Bitcoin.
In a post on August 7th on X, Mizrachi described the idea as “great” and expressed his hope that Panama Canal authorities would adopt it.
Max Kaiser, president of El Salvador, President Naive Bukere’s advisor on the issue of Bitcoin, suggested that Panama could accumulate a significant bitcoin reserve by encouraging carriers to pay in flagship codes rather than Fiat.
This creates a strategic Bitcoin reserve and allows for the steady inflow of BTC from maritime traffic.
The Panama Canal, which connects the Atlantic and Pacific oceans, has been an important trade route since its opening in 1914. The link promotes approximately 13,000-14,000 ship intersections each year, spanning 82 kilometers (52 miles).
According to Keizer, the canal generates around $5 billion in revenue per year. This is a significant portion of Panama’s income.
With this in mind, he believes that even a partial shift to Bitcoin payments can significantly increase the country’s reserves, making it a more attractive option for international shipping.
Panama’s Psychological Embrace
Mizrachi’s support is consistent with the nature of Panama government custody.
Earlier this year, Panama City passed laws to formalize the use of digital assets, allowing voluntary cryptocurrency payments and setting regulatory guidelines for use in financial transactions.
This includes creating licensing requirements for virtual asset service providers (VASPs) and adhering to international financial standards.
Therefore, as Panama advances its proposed discount program, it marks another step in the country’s efforts to embrace cryptocurrency and integrate Bitcoin into its economic strategy.