Panama City could be on track to become Central America’s next Bitcoin hotspot after Mayor Mayer Mizrachi teased the creation of a city-level Bitcoin reserve. His cryptic hint came right after a high-profile meeting with El Salvador’s leading crypto strategists.
A Cryptic Clue Sparks Excitement
Mayor Mizrachi posted the words “Bitcoin Reserve” on X shortly after meeting with El Salvador’s Bitcoin policy leaders, Max Keiser and Stacy Herbert. The post, just 11 days ahead of his scheduled speech at Bitcoin 2025 in Las Vegas, has stirred speculation across the crypto community.
While no official details have been disclosed, the timing and tone hint at major developments—perhaps even Panama City mirroring El Salvador’s national Bitcoin reserve, which now holds 6,179 BTC worth nearly $640 million.
Crypto Payments Pave the Way
Panama City is already moving toward crypto adoption. A recently approved measure may soon allow Bitcoin, Ethereum, Tether (USDT), and USDC to be used for public payments—including taxes and municipal fees—pending the implementation of crypto-to-fiat conversion systems.
Although establishing a city-level reserve is possible, a federal-level Bitcoin reserve would require legislation by the National Assembly, which Mizrachi has not yet formally initiated.
As per Max Keiser’s post, they discussed using Panama’s hydroelectric energy for sustainable Bitcoin mining—similar to how El Salvador leverages geothermal power. This could help Panama position itself as a green crypto-mining hub.
In a notable educational initiative, Herbert confirmed that Panama City will adopt El Salvador’s “What is Money?” financial literacy textbook in its online library—marking a deeper collaboration between the two nations.
Conclusion
Mayor Mizrachi appears bullish on the idea of a Bitcoin reserve, but more clarity is expected once he consults with national lawmakers. With El Salvador recently facing IMF tensions over its Bitcoin policy, Panama may tread cautiously.However, with the Bitcoin 2025 Conference just around the corner and Mizrachi set to speak, the crypto world is watching closely
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Pi Network (PI) is down nearly 10% in the last 24 hours, as multiple indicators point to growing bearish momentum. The DMI shows a clear shift from an uptrend to a downtrend, while CMF data confirms increasing outflows.
EMA lines are also warning of a potential death cross, which could trigger further losses. Here’s a breakdown of what the charts are signaling for PI in the near term.
Bearish Momentum Builds as PI Network’s DMI Flips to Downtrend
Pi Network’s (PI) DMI chart reveals a clear shift in momentum, with the ADX dropping from 43.68 to 39.17 over the past two days.
The ADX, or Average Directional Index, measures the strength of a trend, with values above 25 generally indicating a strong trend.
Although the current reading still suggests solid momentum, the recent decline in ADX combined with the trend reversal from uptrend to downtrend signals that bullish strength is fading and bearish pressure is taking control.
Supporting this shift, the +DI (Directional Indicator) has dropped sharply from 22.11 to 13.29, while the -DI has surged from 11.32 to 30.95.
The +DI represents bullish strength, and the -DI represents bearish strength—so this crossover and widening gap confirm that sellers are now in control. This setup typically points to continued downside, especially if the -DI remains dominant and the ADX stabilizes or rises again, signaling a strengthening bearish trend.
Selling Pressure Intensifies as Outflows Accelerate on PI Network
Pi Network’s Chaikin Money Flow (CMF) has dropped sharply to -0.13, down from 0.07 just a day ago. The CMF is a volume-based indicator that measures the flow of money in and out of an asset over a set period.
It ranges from -1 to +1, with positive values indicating buying pressure and negative values suggesting selling pressure.
A sudden shift from positive to negative typically signals a change in sentiment and potential weakness ahead.
With the CMF now at -0.13, it suggests that outflows are picking up and sellers are becoming more active.
This kind of drop often reflects reduced demand and a lack of confidence from buyers, especially if it comes alongside declining prices or weakening momentum indicators.
If the CMF remains in negative territory, it could point to sustained bearish pressure and a risk of further downside for PI unless strong inflows return soon.
Will PI Fall Below $0.50?
Pi Network’s EMA lines are signaling a potential death cross, where the short-term moving average crosses below the long-term moving average.
This is typically seen as a bearish sign, often preceding further downside. If confirmed, it could lead PI to retest the support level at $0.54.
Regulatory sandboxes have emerged as a concept to drive innovation in a controlled setting. They allow companies to test new crypto products and services while regulators observe and adapt regulations. While jurisdictions like the UK, the UAE, and Singapore have already created sandboxes, the US has yet to create one at the federal level.
BeInCrypto spoke with representatives of OilXCoin and Asset Token Ventures LLC to understand what the US needs to build a federal regulatory sandbox and how it can unify a fragmented testing environment for innovators.
A Patchwork Approach
As the name suggests, regulatory sandboxes have emerged as a tool for providing a controlled testing ground. This environment allows entrepreneurs, businesses, industry leaders, and lawmakers to interact with new and innovative products.
According to the Institute for Reforming Government, 14 states in the United States currently have regulatory sandboxes for fintech innovation.
Of those, 11 are industry-specific and cover other sectors like artificial intelligence, real estate, insurance, child care, healthcare, and education.
Utah, Arizona, and Kentucky are the only jurisdictions among these states with an all-inclusive sandbox. Meanwhile, all but 12 states are currently considering legislation to create some regulatory sandbox for innovation.
Due to its relatively short existence, the crypto market has underdeveloped legislation. While state-level sandboxes enable innovators to demonstrate their products’ capabilities to the public, they are significantly constrained by the lack of federal regulatory sandboxes.
The Need for Federal Oversight
Though statewide efforts to create regulatory sandboxes are vital for innovation, entrepreneurs and businesses still face constraints in developing across borders or reaching an audience at a national level.
Rapid advancements in fields like blockchain and artificial intelligence (AI) add a particular layer of uncertainty, given that existing legal frameworks may not be well-suited to these technologies.
At the same time, regulators may face difficulties in developing appropriate rules for these technologies due to a potential lack of familiarity with these constantly changing industries.
As a result, industry participants are increasingly calling for creating a federal regulatory sandbox. This environment could be a collaborative framework to address the gap, facilitating communication and knowledge sharing between regulators and industry stakeholders.
“The implementation of a federal regulatory sandbox in the United States has the potential to significantly enhance both innovation and regulatory oversight by reducing the uncertainties often associated with navigating the regulatory landscape across state lines. Such an initiative could help establish a coherent framework characterized by uniformity, continuity, and a conducive environment for innovation,” said Paul Talbert, Managing Director of ATV Fund.
According to Rademacher and Talbert, this proposal would meet the needs of all players involved.
Benefits of a Federal Regulatory Sandbox
A sandbox provides innovators with a controlled environment to test products under regulatory oversight without the immediate burden of full compliance with rules that may not yet fit their technology.
It also allows regulators to acquire firsthand insights into blockchain applications, facilitating the creation of more knowledgeable and flexible regulatory policies.
“Startups should have clear eligibility criteria to determine their qualification for participation, while regulators must outline specific objectives—whether focused on refining token classification frameworks, testing DeFi applications, or improving compliance processes,” Rademacher said.
It could also help the United States reinforce its position as a leader in technological innovation.
“By fostering innovation through simplicity, regulatory certainty, and conducive environments, the United States can significantly strengthen its competitive position in the global fintech landscape,” Talbert added.
While the United States has stalled in creating a federal framework for fintech innovation, other jurisdictions around the world have already gained significant ground in this regard.
Global Precedents
The Financial Conduct Authority (FCA), which regulates the United Kingdom’s financial services, launched the first regulatory sandbox in 2014 as part of Project Innovate. This initiative aimed to provide a controlled environment for testing innovative products.
The government asked the FCA to establish a regulatory process to promote new technology-based financial services and fintech and ensure consumer protection.
The United Arab Emirates (UAE) and Singapore, in particular, have made progressive strides in creating federal regulatory sandboxes.
The UAE, for example, currently has four different sandboxes: the Abu Dhabi Global Market (ADGM) Regulation Lab, the DSFA Sandbox, the CBUAE FinTech Sandbox, and the DFF Regulation Lab.
Their focus areas include digital banking, blockchain, payment systems, AI, and autonomous transport.
Meanwhile, the Monetary Authority of Singapore (MAS) launched its Fintech Regulatory Sandbox in 2016. Three years later, MAS also launched the Sandbox Express, providing firms with a faster option for market testing certain low-risk activities in pre-defined environments.
“The success of regulatory sandboxes in jurisdictions such as the United Kingdom, Singapore, and the United Arab Emirates has highlighted the importance of key attributes: regulatory collaboration, transparent processes, continuous monitoring, and the allocation of dedicated resources. As a result, a growing number of jurisdictions worldwide are looking to replicate the frameworks established by these pioneering countries to strengthen their competitive position in the global fintech landscape,” Talbert said.
Rademacher believes these jurisdictions’ innovations should prompt the United States to accelerate its progress.
For that to happen, the United States must overcome certain hurdles.
Challenges of a Fragmented US Regulatory Landscape
A fragmented network of federal and state agencies overseeing financial services presents a key challenge to establishing a US federal regulatory sandbox.
“Unlike other countries with a single financial authority overseeing the market, the U.S. has multiple agencies—including the SEC, CFTC, and banking regulators—each with different perspectives on how digital assets should be classified and regulated. The lack of inter-agency coordination makes implementing a unified sandbox more complex than in jurisdictions with a single regulatory body,” Rademacher told BeInCrypto.
Yet, in recent years, important SEC and CFTC actors have expressed interest in adopting a more favorable regulatory approach to innovation.
“Even though I tend to be more of a beach than a sandbox type of regulator, sandboxes have proven effective in facilitating innovation in highly regulated sectors. Experience in the UK and elsewhere has shown that sandboxes can help innovators try out their innovations under real-world conditions. A sandbox can provide a viable path for smaller, disruptive firms to enter highly regulated markets to compete with larger incumbent firms,” Peirce said in a statement last May.
However, the full scope of national regulations far exceeds the authority of these two entities.
Congressional and Constitutional Hurdles
Any legislative measure to develop a federal regulatory framework for sandboxes in the United States would have to undergo Congressional approval. Talbert highlighted several potential constitutional dilemmas the promotion of an initiative of this nature may face.
“These dilemmas include issues related to the non-delegation doctrine, which raises concerns about the constitutionality of delegating legislative power; equal protection considerations under the Fifth Amendment’s Due Process Clause; challenges arising from the Supremacy Clause; and implications under the Administrative Procedure Act (APA) and principles of judicial review,” he said.
To address these complexities, Congress must enact clear legal boundaries that ensure a regulatory framework is both predictable and open. Given the current administration’s emphasis on technological innovation, the prospects for creating a sandbox appear positive.
“Given the current composition of Congress, which aligns with the political orientation of the new executive branch, there may be a timely opportunity for regulatory reform. Such reform could facilitate the creation of a cohesive federal regulatory framework and enhance collaboration among federal agencies,” Talbert told BeInCrypto.
However, creating a federal regulatory sandbox is not a one-size-fits-all solution.
Balancing State Autonomy and Federal Regulations
State autonomy is enshrined in the US Constitution. This protection means that, even though a regulatory sandbox may exist at the national level, individual states still have the authority to restrict or prohibit sandboxes within their jurisdictions.
Encouragingly, most US states are already exploring regulatory sandboxes, and the states that have already implemented them represent diverse political viewpoints.
However, other considerations beyond political resistance must also be addressed.
“A federal regulatory sandbox might also face opposition from established financial institutions, including banks, which may perceive potential threats to their existing business models. Furthermore, federal budgetary constraints could impede the government’s capacity to support the development and maintenance of a federal regulatory framework,” Talbert added.
Effective federal regulations will also require a balance between businesses’ concerns and regulators’ responsibilities.
“The two biggest risks are overregulation—imposing excessive restrictions that undermine the sandbox’s purpose—or underregulation, failing to provide meaningful clarity. If the rules are too restrictive, businesses may avoid participation, limiting the sandbox’s effectiveness. If they are too lax, there is a risk of abuse or regulatory arbitrage. A well-executed federal regulatory sandbox should not become a bureaucratic burden but rather a dynamic framework that fosters responsible growth in the digital asset space,” Rademacher told BeInCrypto.
Ultimately, the best approach will require coordination from different governing bodies, industry stakeholders, and bipartisan collaboration.
Fostering Collaboration for a Successful Sandbox
Due to recent strained communication between tech and federal agencies, Rademacher believes fostering a cooperative atmosphere is essential for creating a functional federal sandbox.
“The approach must be collaborative rather than adversarial. Agencies should view the sandbox as an opportunity to refine regulations in real time, working alongside industry participants to develop policies that foster responsible innovation. Involvement from banking regulators and the Treasury Department could also be valuable in ensuring that digital assets are integrated into the broader financial system in a responsible manner,” he said.
Achieving this requires a bipartisan approach to harmonizing regulatory goals and setting clear boundaries. Industry collaboration with lawmakers and regulators is vital to showing how a sandbox can promote responsible innovation while safeguarding consumers.
“Its success will ultimately depend on whether it serves as a bridge between innovation and regulation, rather than an additional layer of complexity,” Rademacher concluded.
P2P.me, an innovative crypto-to-fiat application, has successfully raised $2 million in seed funding from prominent investors, including Multicoin Capital and Coinbase Ventures.
This financial infusion aims to enhance the platform’s capabilities in bridging the gap between cryptocurrency payments and traditional fiat systems, particularly in regions where QR code-based transactions are prevalent.
Addressing the Crypto-Fiat Divide
The widespread adoption of cryptocurrencies has introduced a new paradigm in digital payments.
However, a significant challenge persists: while many users are eager to transact using cryptocurrencies, a majority of vendors still prefer fiat currencies.This disparity is especially pronounced in areas where QR code payments dominate the financial landscape.
P2P.me offers a novel solution to this conundrum.Unlike traditional on-and-off ramps that often involve complex processes and intermediaries, P2P.me leverages a decentralized network of intermediaries.
In this system, a user initiates a payment in USDC (a stablecoin pegged to the U.S. dollar), and a designated intermediary accepts the USDC, subsequently transferring the equivalent fiat amount to the intended recipient.
Remarkably, this entire transaction is completed in approximately 90 seconds, providing a swift and efficient means of converting crypto payments into fiat currency.
Innovative Approach to User Verification
In an era where data privacy concerns are paramount, P2P.me distinguishes itself by implementing zero-knowledge proofs for user verification.
This advanced cryptographic method allows the platform to authenticate users without storing sensitive personal information.The system assesses the authenticity of a user’s social media presence and may also verify government-issued identification, all without retaining this data.This approach not only streamlines the verification process but also enhances user privacy and security.
According to reports, the Base-built platform plans to launch a token within the next 12 months, aiming to transfer control to the community.
We’ve raised $2M from Multicoin Capital (@multicoincap) & Coinbase Ventures(@cbventures) to decentralize crypto-to-fiat swaps.
P2P.me’s emergence comes at a pivotal time in the evolution of digital payments.
The platform’s ability to seamlessly integrate stablecoin transactions into existing fiat-based payment infrastructures addresses a critical bottleneck in the adoption of cryptocurrencies for everyday transactions.
By facilitating rapid and secure crypto-to-fiat conversions, P2P.me not only enhances the utility of digital currencies but also fosters greater acceptance among vendors who have been hesitant to embrace crypto payments.
Final Thoughts
Thus, with its recent infusion of $2 million in seed funding from industry heavyweights like Multicoin Capital and Coinbase Ventures, P2P.me is poised to make significant strides in the crypto payment landscape.
y addressing the longstanding challenge of crypto-to-fiat conversions, particularly in QR code-centric economies, P2P.me stands to play a crucial role in bridging the gap between digital currencies and traditional financial systems.As the platform progresses towards its goal of community-driven governance, it exemplifies the innovative spirit driving the next wave of financial technology solutions.
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