Main Points:
- Mayor Mayer Mizrachi floated the idea of cargo ships “cutting the line” through the Panama Canal in exchange for paying tolls in Bitcoin at Bitcoin 2025 in Las Vegas.
- The Panama Canal is a linchpin of global maritime commerce, handling about 5% of world shipping and generating roughly $5 billion in annual revenue.
- Panama City has recently authorized cryptocurrency payments for municipal taxes, fines, and services, and Mizrachi has proposed a city-level Bitcoin reserve.
- Key implementation challenges include crypto price volatility, regulatory approval from the Panama Canal Authority and national government, and fairness concerns for smaller carriers.
- Similar public-sector crypto initiatives are underway globally: Detroit will accept crypto for taxes and fees in mid-2025, and El Salvador pioneered national Bitcoin adoption in 2021.
- A Bitcoin fast-pass could reshape maritime payment systems, incentivize early crypto adopters, and bolster Panama’s reputation as a fintech innovator.
1. Panama Canal’s Strategic Significance
The Panama Canal, an engineering marvel linking the Caribbean Sea and Pacific Ocean, saves ships weeks of travel compared to the alternative of circumnavigating South America. It is responsible for approximately 5 percent of global maritime commerce, with nearly 10,000 vessels transporting 423 million tons of cargo through its locks during the October 2023–September 2024 fiscal year, generating close to $5 billion in toll revenue for Panama.
As a critical chokepoint in international trade, the Canal’s throughput directly affects global supply chains, energy shipments, and commodity flows. Any improvement in efficiency—or perceived preferential treatment—can have significant ripple effects on shipping schedules, freight rates, and national GDPs, particularly for economies heavily reliant on maritime exports and imports.
2. Mizrachi’s Bitcoin Fast-Pass Proposal
On May 29, 2025, at the Bitcoin 2025 conference in Las Vegas, Panama City Mayor Mayer Mizrachi suggested that cargo ships could expedite their transit through the Canal by paying tolls in Bitcoin. During a panel moderated by Mike Peterson of Bitcoin Beach (El Salvador), and alongside Bitcoin policy experts Max Keiser and Stacy Herbert, Mizrachi asked rhetorically:
“What if you get a perk for paying in Bitcoin—get your ship to go quicker if you pay in Bitcoin?” .
This framing positioned Bitcoin payments as an incentive for early adopters, highlighting cryptocurrency’s potential for near-instant settlement compared to slower bank transfers. However, Mizrachi’s remarks were exploratory and non-binding, emphasizing the need for further study by both the Panama Canal Authority and national legislators before any operational changes could be enacted.
3. Panama City’s Cryptocurrency Adoption Momentum
In parallel with his Canal proposal, Mizrachi has championed broader crypto initiatives at the municipal level. Panama City recently passed legislation allowing residents and businesses to pay taxes, fines, permits, and other fees using Bitcoin, Ether, and USDC, positioning the city as a crypto-forward jurisdiction in Central America. Mizrachi also unveiled plans for a “Bitcoin reserve” for Panama City—home to over half of the nation’s GDP—arguing that, as mayor, he could establish such a reserve without requiring legislative approval.
He urged the national parliament to delay active regulation of cryptocurrencies, stating:
“Don’t touch it, don’t get near it, don’t even look at it—let it operate, let it function, and then decide whether to regulate or promote it,” .
Mizrachi estimates that Panamanian Bitcoin transactions exceed $5 billion annually, although much of this activity currently occurs in informal or private settings due to cautious public sentiment.
4. Challenges and Considerations for Implementation
Volatility Management: Bitcoin’s price can swing double-digit percentages within days. To maintain predictable Canal revenues, a real-time oracle system or instant settlement mechanism would be needed to convert BTC to USD at the time of payment, potentially via a trusted crypto custodian or stablecoin overlay.
Regulatory Approval: Any change to the Canal’s first-come, first-served scheduling would require sign-off from the Panama Canal Authority, the national government, and possibly international shipping stakeholders concerned with equitable treatment. Past Canal policy shifts—such as debates over U.S. control sparked by former President Trump in December 2024—illustrate the geopolitical sensitivities involved .
Fairness and Market Impact: Introducing a pay-for-priority system may disadvantage smaller carriers or those without crypto-capable treasury operations. Shipping lines could pass additional costs to consumers or lobby for exemptions, complicating policy design. Transparent criteria and caps on Bitcoin fast-pass slots may help mitigate these concerns.
5. Global Trends in Public-Sector Crypto Adoption
El Salvador’s National Bitcoin Law (2021): In September 2021, El Salvador became the first country to adopt Bitcoin as legal tender, mandating its acceptance alongside the U.S. dollar and creating a $150 million Bitcoin trust to stabilize merchant conversions. While controversial, the move spurred tourism and crypto innovation hubs.
U.S. Municipal Initiatives:
- Detroit, Michigan plans to allow cryptocurrency payments for taxes and fees by mid-2025, leveraging a PayPal-managed platform supporting BTC, ETH, LTC, BCH, and PYUSD .
- Williston, North Dakota and Miami Lakes, Florida already accept crypto for utility bills and municipal services, experimenting with blockchain’s potential for civic engagement.
These examples demonstrate growing interest in harnessing blockchain for transparent revenue collection, improved payment processing speeds, and tech-driven economic development.
6. Potential Impact on Shipping and Finance
A Bitcoin fast-pass model could catalyze:
- Faster Settlement: Crypto’s near-instant finality can reduce banking delays, enabling shipping companies to confirm payments and schedule locks more efficiently.
- Competitive Differentiation: Panama could differentiate itself from alternative routes (e.g., Suez Canal) by offering digital-asset payment options, attracting tech-savvy shippers.
- Innovation Ecosystem: By embracing crypto at both municipal and maritime levels, Panama may spur fintech startups, crypto custodians, and blockchain integration services to establish regional headquarters in Panama City.
However, success hinges on collaborative frameworks among port operators, regulators, and crypto service providers to ensure reliability, security, and equitable access.
Conclusion
Mayor Mayer Mizrachi’s suggestion to grant Panama Canal fast-pass privileges to Bitcoin-paying ships is emblematic of a broader push to integrate cryptocurrency into traditional economic infrastructures. With the Canal’s immense strategic and financial importance, careful planning around volatility management, regulatory frameworks, and fairness will be crucial. If implemented, Panama could solidify its reputation as a blockchain innovation hub—joining the ranks of pioneering jurisdictions like El Salvador and Detroit—and reshape global maritime payment systems for the digital age.
