Panama City now accepts crypto as a form of payment for taxes and city fees. Bus fares and permits are among them. Panama City’s mayor, Mayor Mizrachi, announced so on April 15.
Panama is among a number of cities worldwide that are opening their systems to digital currencies. The move is intended to digitalize the local government and address the increasing demand for the use of crypto in public services.
In the nation’s capital, the US Securities and Exchange Commission is turning its attention to crypto custody. On April 25, the SEC’s Crypto Task Force is hosting a roundtable.
Balancing innovation and regulation
The decision aims to modernize city operations and meet the rising public interest in using crypto for government services. The roundtable is one part of a broader plan to address crypto in U.S. regulation. Some of the topics to be discussed are how companies keep and secure digital assets.
Participants from law firms, universities, and blockchain companies will be part of the panels. They will address threats, regulations, and potential enhancements. The opening session shall comprise important SEC officials, including members of the Crypto Task Force.
The first panel addresses custody by broker-dealers. Members of top crypto companies Kraken and Fireblocks will be among the speakers. The second panel of speakers will touch on custody issues for investment advisers and funds. Legal professionals and academics will weigh in with insight and practical advice.
Crypto momentum builds in regulation and adoption
The SEC is looking to better understand prevailing practices in crypto custody. The task force wishes to create clear avenues for both companies and investors. As adoption continues to grow, the pressure mounts for regulators to act. Sessions such as those at the roundtable help determine the shape of that future.
These developments in Panama City and Washington are symptomatic of a wider trend. Digital assets are now treated more seriously by governments.
Governments want to weigh in with regulations to make things safe and clear while allowing for innovation. Accepting public payment in crypto or instituting stringent regulation, both cities demonstrate an increased interest in the sector.
The following weeks might see further developments. Other governments might be inspired to follow in Panama’s footsteps. The SEC also might further clarify after the roundtable. In the meantime, both developments mark a step in the right direction in how governments deal with crypto. The way ahead will require caution, yet the momentum is building.
