Panama City accepting crypto? Sounds futuristic, right? Wrong. It’s more bureaucracy on top of a system that’s already flushed with cash. Oh, double, as in, they aren’t even really accepting crypto, they are just immediately cashing it back into USD! It’s akin to throwing a great new paint job on a clunker – the cylinders still aren’t firing.
Crypto Settled In USD? Seriously?
Let's be blunt: what's the point? The entire point of cryptocurrency is decentralization, moving away from the reach of traditional finance and government oversight. Panama City's plan? All crypto payments are instantly converted to USD by the partnered bank. A bank! The very institutions crypto was intended to undermine!
This isn't adoption. It's assimilation. In short, it’s taking something potentially revolutionary and neutering it—transforming it into a digital on-ramp for the dollar. It’s a little like saying you’re supporting the transition to electric vehicles but requiring them to still charge using gasoline. The audacity!
Certainly not the average Panamanian. What’s more, it probably enriches the affiliated bank, providing them with lucrative fees for converting crypto to USD. It’s a risky financial merry-go-round where the only sure winner is the house. Think about it: increased transaction fees, reliance on a third-party institution, and zero actual crypto integration into the local economy. What's innovative about that?
Stability Over Speculation? A Fair Question
We’re inundated with messages around the future of crypto, about how it’s going to make you rich beyond your wildest dreams. Let's be honest: it's still a highly speculative asset. Though a few have become multimillionaires, hundreds of others have lost their shirts. Is Panama City really protecting its residents by pushing them to participate in such a hot market? What’s alarming is that it feels like any smart growth is immediately re-piped back into the old, proven greenback.
America’s dollar has been the bedrock of Panama’s economy for 115 years. In times of uncertainty and harmful groundswell movements, it offers comfort, reassurance, and protection. Why add a layer of uncertainty, a digital casino chip, to a system whose cash already works.
Look, I get it. Mayor Mizrachi claims he wants to be seen as a visionary, to make Panama City the next crypto-crazy city. But this isn't progress; it's window dressing. Real progress would involve fostering a genuine crypto ecosystem, allowing businesses to accept and hold crypto, and creating a regulatory environment that supports innovation without sacrificing stability.
Failed Legislation: A Warning Sign?
Panama has previously attempted (and failed) at passing comprehensive crypto legislation. The Supreme Court, remarkable as it may seem, has even had to intervene to rein in some of these efforts. Shouldn't that be a warning sign? Aren’t these the sorts of things that policymakers should be asking about when these initiatives fail, rather than seeking to go around the system with these half-baked plans?
This move appears to be a last ditch effort to avoid the legislative process. It’s an unjustified band-aid to cut political steaks rather than address the real root problems. Deep down, we know it’s a dangerous shortcut that’s sure to take us to dead ends.
And, of course, there’s the risk of unintended consequences. Increased regulatory scrutiny, facilitation of money laundering, and the unintentional creation of a two-tiered financial system are all very real concerns. The question is whether these risks are justified by the benefits—potential, highly questionable benefits at that.
This isn’t futurism. This is maintaining the status quo while posturing as cutting edge. It’s Dollarization 2.0, a sped-up remake on a system that truly could use Dollarization’s medicine. Panama City deserves better than this.
This isn't about embracing the future; it's about clinging to the present while pretending to innovate. It's Dollarization 2.0, a digital facelift on a system that desperately needs real reform. Panama City deserves better than this.
