Panama City’s mayor, José Isabel Blandón, recently hinted at a potential city-level Bitcoin reserve, setting off a wave of speculation. This all started with a simple tweet: “Bitcoin Reserve.”
A Meeting and a Tweet
The tweet followed a meeting between Blandón, and prominent Bitcoin advocates Max Keiser and Stacy Herbert, known for their involvement in El Salvador’s Bitcoin adoption. While details of the meeting remain scarce, the timing of the tweet—just before Blandón headed to the Bitcoin 2025 conference—suggests something big might be brewing.
Legal Roadblocks
Creating a Bitcoin reserve wouldn’t be a walk in the park. It requires navigating Panama’s National Assembly, meaning a new bill needs to be drafted, debated, amended, and approved. This process could take considerable time.
Energy and Infrastructure
The meeting also touched upon the energy requirements for Bitcoin mining. Keiser highlighted Panama’s hydroelectric potential, suggesting it could power Bitcoin mining operations using clean energy. However, this would necessitate securing permits, upgrading the grid, and getting buy-in from various companies and regulatory bodies.
Crypto Payments on the Way
Blandón has already announced Panama City’s intention to accept Bitcoin, Ether, Tether, and USDC for payments once the necessary infrastructure is in place. This includes developing the systems to convert cryptocurrencies to fiat currency, securing reliable banking or fintech partners, and establishing secure digital wallets. A launch date hasn’t been set yet.
Big Players Bet on Bitcoin
It’s not just governments showing interest in Bitcoin; major corporations are also increasing their holdings. Michael Saylor’s Strategy Corp. announced plans to raise $84 billion to buy more Bitcoin, including selling off existing stock and increasing its debt limit. Metaplanet also significantly boosted its Bitcoin holdings. Reports indicate that publicly traded companies increased their Bitcoin reserves by 15% in the first quarter of the year, demonstrating a growing belief in Bitcoin as a long-term asset.
