Crypto
DeFi, an abbreviation for “decentralised finance,” describes a wide range of P2P financial services that run on public blockchains like Ethereum or Terra LUNA Classic.

DeFi, short for “decentralised finance,” is a catchall name for the various types of banking that can be conducted on public blockchains like Ethereum. Earning interest, borrowing, lending, purchasing insurance, trading derivatives, trading assets, and many other banking services are all possible through DeFi, but with less hassles and in less time than through traditional banking. DeFi, like other forms of crypto, is accessible worldwide, operates on a decentralised, anonymous, peer-to-peer (P2P) basis, and is anonymous to the public.
To what end is DeFi useful?
DeFi builds on the concept of Bitcoin’s digital currency to provide a low-cost, fully digital alternative to Wall Street (think office towers, trading floors, banker salaries). This has the potential to make it so that everyone with access to the internet can participate in secure, transparent, and free financial markets.
For what reasons would this be advantageous?
No application or “opening” of an account is required. Simply making a wallet will get you access.
Anonymity: No real name or email address is required.
To put it simply, you may move your assets wherever you want, whenever you want, without having to wait for lengthy transfers to complete or pay hefty costs.
Rapid: Interest rates and prizes are frequently adjusted (sometimes every 15 seconds), and they may be much greater than those on traditional Wall Street.
This system is completely open and accessible to all parties concerned (private corporations rarely grant that kind of transparency)
In what way does it function?
Dapps (short for “decentralised apps”) are the primary means by which users interact with DeFi, and at present, the majority of these apps are built for and deployed on the Ethereum network. There is no need to fill out paperwork or open an account like at a regular bank.
Currently, people are using DeFi in the following ways:
Money lending: Put your cryptocurrency to work for you and get paid back in interest and rewards every minute of the month.
Borrow money without ever having to fill out any paperwork, even for short-term “flash loans” that banks and credit unions won’t touch.
You can purchase and sell equities directly with other investors using crypto assets in a peer-to-peer trading model.
Invest some of your cryptocurrency in alternatives to traditional savings accounts to get higher interest rates.
Making a long or short bet on an asset by purchasing a derivative. These are the cryptocurrency equivalent of stock options or futures.
Can you tell me the drawbacks?
Active trading on the Ethereum blockchain might become costly because to the fluctuating transaction rates.
Due to the immaturity of the technology, your investment could be highly volatile depending on the dapps you use and how you use them.
When it comes to the Tax, you’re on your own to keep track of things. The rules may change depending on where you are.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CoinReporter.io and EUReporter.co does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Bitcoin
Panama City Council Pioneers Crypto Payments for Public Services in Historic Vote

On April 15, 2025, Panama City made history as its city council voted to become the first government institution in the country to accept payments in Bitcoin (BTC) and other cryptocurrencies for public services. The decision, announced by Mayor Mayer Mizrachi, allows residents to pay taxes, fees, permits, and fines using Bitcoin, Ethereum (ETH), USD Coin (USDC), and Tether (USDT), marking a significant step toward integrating digital currencies into municipal governance. This move positions Panama City as a regional leader in crypto adoption, reflecting a growing global trend of municipalities embracing blockchain technology.
The initiative bypasses previous legislative hurdles by partnering with a local bank to convert cryptocurrency payments into U.S. dollars on the spot, ensuring compliance with Panama’s legal requirement for public institutions to receive funds in USD. “Legally public institutions must receive funds in $, so we partner with a bank who will take care of the transaction receiving in crypto and convert on spot to $,” Mizrachi stated on X. He added that this model “allows for the free flow of crypto in the entire economy and entire government,” offering a practical solution without the need for new legislation—a challenge that had stalled prior efforts under previous administrations.
Panama City’s approach contrasts with El Salvador’s 2021 decision to make Bitcoin legal tender, which mandated its use and faced challenges due to price volatility. Instead, Panama’s model is optional, focusing on compatibility with existing financial systems while encouraging crypto adoption. The city joins a growing list of jurisdictions exploring crypto payments, such as Colorado in the U.S., which began accepting crypto for taxes in 2022, and Lugano, Switzerland, where Bitcoin payments for public services were approved in 2023. However, Panama’s national stance on crypto remains cautious—President Laurentino Cortizo vetoed a 2022 bill to regulate Bitcoin, citing financial regulation concerns, indicating that broader adoption may face challenges.
The decision comes amid a global surge in corporate and institutional interest in Bitcoin, with companies purchasing a record 95,431 BTC in Q1 2025, as reported by Bitwise. Panama’s move could further stimulate its local crypto economy, allowing residents to use digital assets for everyday transactions with the government without requiring institutions to directly manage them. The city has not yet disclosed which payment providers or wallets will be supported, but local authorities promised further guidance before the program’s full rollout later this year.
While this step is a milestone for crypto adoption in Latin America, its impact may be limited by the immediate conversion to USD, which some argue restricts true integration of digital currencies into the economy. For Panama to fully embrace crypto, structural changes might be needed to allow digital assets to circulate more freely without constant liquidation. Nonetheless, Panama City’s initiative could serve as a model for other municipalities, potentially pressuring national policymakers to revisit crypto legislation. As the world watches, this pioneering vote may inspire a broader shift in how governments interact with digital finance.
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