I sat down recently with my good friend and longtime attorney Gonzalo de la Guardia to talk about something we’re hearing more and more about lately: crypto in Panama. Specifically, how it intersects with the real estate market, what’s real and what’s hype, and what buyers need to know if they’re looking to use crypto to invest here.

You can watch the full video below, but I wanted to lay out the key points here, along with some context we didn’t get to in the interview.

Why Panama Should Be a Crypto-Friendly Country

Panama doesn’t have its own central bank. We’ve used the US dollar as our official currency since 1904, and the Constitution explicitly says we can’t force anyone to accept government-issued paper money. That means Panama, at least in theory, is a wide-open playing field for alternative currencies, including crypto.

From a foundational perspective, Panama should be a perfect environment for crypto innovation. But…

In Practice, It’s More Complicated

As Gonzalo explains in the interview, the issue isn’t the government — it’s the banking system. Panamanian banks rely heavily on U.S. correspondent banks, and for years, those institutions wanted nothing to do with crypto. That reluctance filtered down here, making it tough for local banks to offer crypto services or even open accounts for people involved in the space.

But that’s finally starting to change.

Tower Bank and Caja de Ahorros: Small Steps, Big Implications

Tower Bank — a smaller, more agile institution — has begun offering services to crypto users, including the ability to swap Bitcoin and stablecoins (like USDT or USDC) into fiat. In some cases, they’re now processing payments for government entities like the Municipality of Panama.

Is it all fully integrated and seamless? Not yet. In many cases, it’s more of a workaround — Tower receives the crypto, converts it to dollars, and then passes that on to the final recipient.

Even so, this is a major step forward. There’s also talk of Caja de Ahorros, the government bank, opening up Bitcoin accounts, which would be huge if it materializes.

What About Crypto Laws in Panama?

If you’ve followed crypto news here, you may remember Bill 697, a 2022 proposal that aimed to regulate digital assets and officially recognize crypto for payments and other use cases. It passed the National Assembly but was vetoed by President Cortizo over concerns about potential money laundering. Doh!

Since then, not much has officially moved. As of 2025, there’s no comprehensive legal framework for crypto in Panama. That’s both good and bad: there’s freedom to transact, but no real protection or regulation either.

That means it’s up to the banks, developers, lawyers, and buyers to figure things out on a case-by-case basis.

New momentum is also coming from within the government. In fact, our mayor isn’t just dipping his toes, he’s all in. 

In the last 12 months, Mayor Mizrachi (Panama City):

• Passed a municipal law allowing residents/businesses to pay taxes, fines, fees, and permits using BTC, ETH, USDC, or USDT—with Tower Bank auto-converting to USD.
• Spoke at the Bitcoin 2025 Conference in Las Vegas, saying:
  “We accept Bitcoin… Bitcoin is not just safe. It’s prosperous”
• Suggested innovative perks—like priority Panama Canal passage for ships paying in Bitcoin

That’s not just talk—it’s making Panama City look like a deliberate testbed for public-sector crypto adoption.

What About Taxes & Crypto in Panama?

Here’s where Panama gets interesting: there’s currently no capital gains tax on crypto earnings as long as the income is generated from outside Panama — which applies to most expats and foreign investors. That’s one reason we’re seeing interest from crypto-rich individuals looking to diversify into hard assets like real estate.

For the Record: Always talk to a qualified attorney (like Gonzalo) before assuming full tax exemption.

Can You Actually Buy Property with Crypto?

Yes — but not always easily.

Gonzalo and I walk through some real-world examples in the video, and they all have a common thread: you need two things.

1. A seller willing to accept crypto
2. A legal structure to make the deal secure

There’s no institutional escrow for crypto (yet), so right now it’s mostly lawyers or private actors holding funds in wallets or using multisig keys. That adds risk and makes deals more trust-based than most investors are used to.Some developers are open to crypto, especially if they’re tech-forward or looking to attract international buyers. But if there’s a mortgage involved — or if the seller needs dollars — you’ll almost always need to convert to fiat at some point in the process.

How Does Panama Compare to Other Countries?

We’re ahead of the curve in some ways with a more flexible monetary foundation, no capital gains on foreign-sourced income and there are a few banks starting to play ball. And of course, we have a number of intermediaries and crypto exchanges in Panama.  

But we’re also behind El Salvador (which made Bitcoin legal tender), and way behind countries like the UAE, which are actively courting crypto investors with regulation and infrastructure.

Panama is more like a “quiet sandbox” — no sweeping policies, but a lot of freedom if you know how to operate.

Risks to Be Aware Of

• No formal legal protections for crypto deals
• Banks can still deny crypto-related transfers or accounts
• No standardized escrow or custody services
• Volatility in pricing during long negotiations
• Very few professionals (notaries, brokers, developers) have experience handling crypto deals

Bottom Line: Is Panama Crypto-Friendly?

Yes, but only if you know what you’re doing.

Panama is open-minded about crypto in theory, but in practice, it’s still the Wild West. If you’re flush with digital assets and looking to move into real estate or relocate here, you’ll need to work with people who actually understand the process.

That’s part of what we’re building at Panama Equity — not just selling property, but helping forward-thinking clients navigate the system safely and intelligently.

💬 Got questions about using crypto in Panama’s real estate market? Reach out. We’re working with buyers using stablecoins, Bitcoin, and other digital assets — and we’re plugged into the legal and banking players who can make it happen.