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Panama Canal Explores Bitcoin Payments To Fast-Track Global Shipping
(MENAFN- The Rio Times) Panama City Mayor Mayer Mizrachi proposed prioritizing ships paying transit fees in Bitcoin during a May 29 panel at the Bitcoin 2025 conference.
The Panama Canal, handling 5% of global maritime trade, recorded $5 billion in revenue from 9,944 transits between October 2023 and September 2024 despite a 21% reduction due to drought.
Mizrachi's plan targets efficiency gains for a corridor critical to U.S.-Asia trade, where delays cost shippers up to $200,000 daily. The canal's operator, the Panama Canal Authority, reported 423 million tons of cargo moved in fiscal 2024, with 54% transported by Neopanamax-class vessels.
A new toll structure introduced in January 2024 boosted revenue despite lower traffic, though drought-induced water conservation measures capped daily transits at 27 ships by September.
Mizrachi argues Bitcoi payments could streamline transactions and attract tech-driven logistics firms. Panama City already allows Bitcoin for municipal taxes and fines through dollar-conversion systems.
Panama Canal Bitcoin Proposal Tests Sovereignty
The mayor seeks to expand this to canal fees without legislative approval, mirroring El Salvador's city-level crypto policies. His parallel proposal for a Bitcoin reserve faces scrutiny amid Panama's broader economic challenges, including a $75 million loss at Chiquita Brands from labor strikes.
Geopolitical tensions underpin the move. Former U.S. President Donald Trump vowed to reclaim canal control in December 2024, citing Chinese influence and toll fairness concerns.
Panama exited China's Belt and Road Initiative in 2023, transferring port operations from CK Hutchison to BlackRock. Bitcoin adoption could offer neutrality in this power struggle while modernizing a 110-year-old trade artery.
The canal contributes 7.7% of Panama's GDP and supports 55,000 jobs. Mizrachi claims $5 billion in annual Bitcoin transactions occur informally nationally, suggesting latent demand.
Critics question how volatility would be managed, though existing municipal systems convert crypto to dollars instantly. With 74.7% of canal cargo linked to U.S. ports, the proposal tests crypto's role in high-stakes global infrastructure.
The Panama Canal, handling 5% of global maritime trade, recorded $5 billion in revenue from 9,944 transits between October 2023 and September 2024 despite a 21% reduction due to drought.
Mizrachi's plan targets efficiency gains for a corridor critical to U.S.-Asia trade, where delays cost shippers up to $200,000 daily. The canal's operator, the Panama Canal Authority, reported 423 million tons of cargo moved in fiscal 2024, with 54% transported by Neopanamax-class vessels.
A new toll structure introduced in January 2024 boosted revenue despite lower traffic, though drought-induced water conservation measures capped daily transits at 27 ships by September.
Mizrachi argues Bitcoi payments could streamline transactions and attract tech-driven logistics firms. Panama City already allows Bitcoin for municipal taxes and fines through dollar-conversion systems.
Panama Canal Bitcoin Proposal Tests Sovereignty
The mayor seeks to expand this to canal fees without legislative approval, mirroring El Salvador's city-level crypto policies. His parallel proposal for a Bitcoin reserve faces scrutiny amid Panama's broader economic challenges, including a $75 million loss at Chiquita Brands from labor strikes.
Geopolitical tensions underpin the move. Former U.S. President Donald Trump vowed to reclaim canal control in December 2024, citing Chinese influence and toll fairness concerns.
Panama exited China's Belt and Road Initiative in 2023, transferring port operations from CK Hutchison to BlackRock. Bitcoin adoption could offer neutrality in this power struggle while modernizing a 110-year-old trade artery.
The canal contributes 7.7% of Panama's GDP and supports 55,000 jobs. Mizrachi claims $5 billion in annual Bitcoin transactions occur informally nationally, suggesting latent demand.
Critics question how volatility would be managed, though existing municipal systems convert crypto to dollars instantly. With 74.7% of canal cargo linked to U.S. ports, the proposal tests crypto's role in high-stakes global infrastructure.
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