Panama City Mayor Mayer Mizrachi has sparked speculation about the establishment of a city-level Bitcoin reserve following a cryptic post on social media after meeting with two key figures in El Salvador's Bitcoin policy, Max Keiser and Stacy Herbert.
In his post on May 16, Mizrachi teased the idea of a "Bitcoin Reserve" without divulging specific details about his discussions with Keiser and Herbert. The timing of the post, just 11 days before the Bitcoin 2025 conference in Las Vegas where Mizrachi is scheduled to speak, has piqued interest in the potential collaboration between Panama City and El Salvador in the realm of cryptocurrency.
This move towards a Bitcoin reserve in Panama City would come on the heels of a recent approval allowing the use of cryptocurrencies for public payments, such as taxes, fines, and municipal fees. Mizrachi had previously mentioned that Bitcoin, Ether, Tether, and USDC would be accepted once the necessary crypto-to-fiat payment infrastructure is in place.
To establish a Bitcoin reserve at the federal level, Mizrachi would need to work with Panama's National Assembly to develop legislation, although there is no concrete evidence that such steps have been taken yet.
The conversation between Mizrachi, Keiser, and Herbert reportedly delved into topics such as Bitcoin mining and educational initiatives. Keiser highlighted the potential for Central American countries like El Salvador and Panama to leverage renewable energy sources like geothermal and hydro-electric power to support their Bitcoin mining operations.
Moreover, Herbert mentioned that Panama City plans to incorporate El Salvador's "What is Money?" financial literacy textbook into its online library system, signaling a collaborative effort to enhance financial education in the region.
Keiser and Herbert have been instrumental in shaping El Salvador's Bitcoin policy, which includes the establishment of a Bitcoin reserve comprising over 6,000 BTC, valued at nearly $640 million. Keiser serves as an advisor to President Nayib Bukele on Bitcoin matters, while Herbert oversees the country's Bitcoin Office.
The discussion around Bitcoin reserves is not confined to Panama and El Salvador, as recent developments in the US states of Arizona and New Hampshire have seen the introduction of bills related to Bitcoin reserves. Additionally, reports suggest that Ukraine is also moving towards adopting Bitcoin as a national reserve asset, underscoring the growing interest in cryptocurrencies at both the local and national levels.
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