Panama City Explores Bitcoin Reserve
Panama City Mayor Hints at Bitcoin Reserve
Panama City Mayor Mayer Mizrachi recently sparked considerable interest within the crypto community by hinting at the potential creation of a city-level Bitcoin reserve. This follows a meeting with prominent figures Max Keiser and Stacy Herbert, known for their involvement in El Salvador's Bitcoin adoption.
Meeting and Subsequent Announcement
Mizrachi's social media post, simply stating "Bitcoin Reserve" on May 16th, 2025, immediately preceded his attendance at the Bitcoin 2025 conference in Las Vegas. This cryptic message fueled speculation regarding Panama City's potential foray into Bitcoin reserves.
While details from the meeting remain scarce, local sources indicate discussions focused on Bitcoin policy implementation. The timing of the announcement suggests a significant development is underway.
Legal and Practical Challenges
Establishing a Bitcoin reserve requires navigating several legal hurdles. A bill must be drafted and approved by Panama's National Assembly, a process involving committee reviews, debates, amendments, and budget considerations. This could be a lengthy process.
Energy Considerations
Discussions also extended to sustainable energy sources for Bitcoin mining. Keiser highlighted Panama's hydroelectric potential and El Salvador's geothermal plants, proposing the use of renewable energy to power mining operations. This initiative, however, requires securing permits, upgrading infrastructure, and gaining regulatory approval.
Crypto Payment Systems
Panama City already plans to accept Bitcoin, Ether, Tether, and USDC for city payments once the necessary infrastructure is established. This involves building robust crypto-to-fiat exchange mechanisms, securing partnerships with banks or fintech firms, and implementing secure digital wallets.
Growing Corporate Bitcoin Adoption
The interest in Bitcoin isn't limited to governments. Public companies are also significantly increasing their Bitcoin holdings. Michael Saylor's Strategy Corp. announced plans to raise $84 billion to further increase its Bitcoin holdings, indicating a growing confidence in Bitcoin as a core asset.
Metaplanet, another firm, recently added 1,240 BTC, bringing its total holdings to 6,797 BTC, valued at approximately $706 million. Reports indicate a 15% increase in Bitcoin holdings among publicly listed firms in Q1 2025, highlighting a significant shift in investment strategies.
Note: BTC price at time of writing: $103,583 (TradingView)
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