The Central Prank? Panama is right on the Money

"There will be no forced fiat paper currency in the Republic. Thus, any individual can reject any note that he may deem untrustworthy."

This is a statement in article 114 in the 1904 constitution of Panama.
The citizens of the new (at the time) country, in distrust of the 1886 experiment of forced fiat Colombian paper notes, decided to include this as a caveat and prevention of any impediments to open trade and transport. Panama's unique macroeconomic and monetary arrangements embody freedom of choice in the capital markets, as they have no central banking mechanism.

The U.S. dollar has been Panama's legal tender for 100 years...
The absence of a central bank in Panama has created a completely market-driven money supply. Panama's market has also chosen the US dollar as its de facto currency. Successive governments have chosen to maintain this "self-denying ordinance" because the dollar anchor has given the country a degree of monetary stability. The absence of a central bank ensures no monetary intervention, so Panama essentially has a private monetary system in which the stock of money is determined by the decisions of private agents and banks. The unified currency system eliminates foreign exchange risk, currency mismatches, and speculative attacks so common in other countries with central banks and "sovereign" money. The absence of "policy decisions" regarding monetary or exchange rate affairs reduces risk because less information is needed by outside investors. These features are at the core of a consistent free-market institutional system that has produced a stable economic order and an efficient macroeconomic adjustment mechanism.

For further interest, Murray Rothbard's The Case for a 100 Percent Gold Dollar can supplement a better understanding of how currency, the dollar, and markets shape and transform a movement towards economic freedom.