Panama City Mayor Teases Bitcoin Reserve Plan After Meeting El Salvador Officials: A Potential Crypto Milestone for Central America

Panama City Mayor Mayer Mizrachi has ignited widespread speculation about the city’s ambitions to establish a Bitcoin reserve, following a high-profile meeting with two of El Salvador’s foremost Bitcoin strategists. The cryptic social media post by Mizrachi on May 16, 2025, simply stating “Bitcoin Reserve,” has set the crypto community abuzz, especially as it came shortly after his discussions with Max Keiser and Stacy Herbert-key architects behind El Salvador’s pioneering Bitcoin policies.

This announcement comes at a pivotal moment as Panama City prepares to showcase its crypto vision at the upcoming Bitcoin 2025 conference in Las Vegas, signaling the city’s intent to deepen its integration with Bitcoin and digital assets.

Panama City’s Vision: From Crypto Acceptance to Bitcoin Reserves

Mayor Mizrachi has been vocal about Panama City’s plans to embrace cryptocurrencies as part of its financial ecosystem. Previously, he confirmed that the city intends to accept not only Bitcoin but also major stablecoins like Ether (ETH), Tether (USDT), and USD Coin (USDC), contingent on the establishment of robust crypto-to-fiat payment infrastructure.

However, the prospect of creating a formal Bitcoin reserve represents a significant escalation beyond transactional acceptance. Such a reserve would involve holding Bitcoin as part of the city’s financial assets, potentially serving as a hedge against inflation and a store of value. This approach mirrors El Salvador’s groundbreaking move in 2021 when it became the first country to adopt Bitcoin as legal tender and incorporate it into its national reserves.

Yet, for Panama City to formalize a Bitcoin reserve, legislative approval from Panama’s National Assembly would be necessary-a step Mayor Mizrachi has not publicly disclosed taking thus far. The mayor’s recent post, however, suggests that preliminary discussions and strategic planning are underway.

Learning from El Salvador: Insights from Max Keiser and Stacy Herbert

The meeting between Mayor Mizrachi and El Salvador’s Bitcoin strategists Max Keiser and Stacy Herbert provided valuable insights into how Panama City might replicate or adapt El Salvador’s Bitcoin initiatives.

• Max Keiser, a senior advisor to El Salvador’s President Nayib Bukele, emphasized the potential of leveraging Panama’s abundant hydroelectric resources to power Bitcoin mining operations. He drew parallels with El Salvador’s use of geothermal energy from volcanoes to fuel its Bitcoin infrastructure, highlighting the synergy between renewable energy and crypto mining as a sustainable economic driver.

• Stacy Herbert, who manages policy implementation at El Salvador’s Bitcoin Office, revealed that Panama City plans to incorporate El Salvador’s “What is Money?” financial literacy textbook into its digital library. This textbook is a cornerstone of El Salvador’s national curriculum on Bitcoin, aimed at educating citizens on the fundamentals of money, economics, and cryptocurrency.

The exchange of knowledge underscores Panama City’s commitment not only to adopting Bitcoin but also to fostering financial education and public understanding-a critical factor for successful crypto integration.

Regional and Global Context: Bitcoin Reserves as an Emerging Trend

Panama City’s Bitcoin reserve plan follows similar initiatives in other jurisdictions:

• Arizona and New Hampshire in the United States have passed legislation supporting the creation of Bitcoin reserves at the state level.

• Ukraine is reportedly exploring Bitcoin as part of its national reserves strategy amid ongoing economic and geopolitical challenges.

These developments reflect a growing trend among governments and municipalities to diversify their reserves with digital assets, recognizing Bitcoin’s potential as a hedge against currency devaluation and inflation.

Institutional Momentum: Public Companies Doubling Down on Bitcoin

The surge in interest from public companies further validates the strategic value of Bitcoin reserves. Michael Saylor’s company, Strategy (formerly MicroStrategy), continues to lead the charge by announcing plans to double its capital-raising efforts to $84 billion to acquire additional Bitcoin.

Strategy intends to raise $21 billion through common stock sales and has expanded its debt issuance target from $21 billion to $42 billion, with $14.6 billion still available under current authorizations. This aggressive capital deployment underscores institutional confidence in Bitcoin’s long-term value proposition.

Similarly, Metaplanet, a Japanese company, recently acquired 1,241 BTC (approximately $126 million), bringing its total holdings to 6,796 BTC valued at over $706 million. This acquisition reflects a broader institutional trend, with publicly listed firms increasing their Bitcoin holdings by 16.1% in Q1 2025 despite market volatility.

Why Panama City’s Bitcoin Reserve Could Be a Game-Changer

Panama City’s potential Bitcoin reserve could have far-reaching implications:

• Economic Diversification: By holding Bitcoin, Panama City could diversify its financial assets, reducing reliance on traditional fiat currencies and exposure to inflationary pressures.

• Attracting Crypto Investment: A Bitcoin reserve and acceptance of major stablecoins could position Panama City as a crypto-friendly hub, attracting blockchain startups, investors, and fintech innovation.

• Financial Inclusion and Education: Incorporating Bitcoin education into public resources can empower citizens with knowledge, fostering broader adoption and responsible use of digital assets.

• Regional Leadership: Panama City could become a trailblazer in Central America, encouraging neighboring countries to explore similar crypto initiatives.

Challenges Ahead: Legislative and Infrastructure Hurdles

Despite the enthusiasm, several challenges remain:

• Legislative Approval: Establishing a Bitcoin reserve requires formal backing by Panama’s National Assembly, which involves political negotiation and public debate.

• Regulatory Framework: Panama will need to develop clear regulations governing crypto reserves, trading, taxation, and consumer protection to ensure stability and compliance.

• Technical Infrastructure: Building reliable crypto-to-fiat payment systems and secure custody solutions is essential for practical implementation.

• Market Volatility: Bitcoin’s price fluctuations pose risks that must be managed through prudent financial strategies.

Looking Forward: Bitcoin 2025 and Beyond

Mayor Mizrachi’s scheduled appearance at the Bitcoin 2025 conference in Las Vegas offers a platform to elaborate on Panama City’s crypto ambitions and engage with global experts, investors, and policymakers.

As Panama City navigates the complexities of integrating Bitcoin into its financial system, the world will be watching closely. Success could inspire other cities and countries to follow suit, accelerating the mainstream adoption of cryptocurrencies.