Detroit residents can soon pay their taxes and other city fees in cryptocurrency, making it the largest U.S. city to do so. The option, which will be run on the city’s secure PayPal platform, is expected to launch by mid-2025, according to an announcement on Detroit’s official website.
Detroit City to Soon Accept Cryptocurrency for Taxes
This initiative is part of a broader push by Detroit officials to explore new technologies that enhance public service accessibility, engage the community, and boost economic growth.
“Detroit is creating an environment for residents and entrepreneurs where technology can thrive,” said Mayor Mike Duggan.
“We’re proud to be one of the first large U.S. cities actively exploring blockchain applications for civic purposes, including allowing residents to pay using cryptocurrency.”
Detroit’s Treasurer, Nikhil Patel, highlighted the practical benefits of this new payment option, noting that it will streamline transactions, cut costs, and increase accessibility for all Detroiters.
“Our office is committed to modernizing payment channels to enhance the customer experience while improving internal operations,” Patel said. For residents who may be unbanked or who prefer digital payments, this system offers an easy, efficient way to handle city fees online.
Detroit’s Involvement in the Blockchain Sector
Beyond allowing tax payments in crypto, Detroit is reaching out to blockchain entrepreneurs for potential partnerships. Justin Onwenu, the city’s new Director of Entrepreneurship and Economic Opportunity, will lead an open call for blockchain-based civic applications that could improve transparency, data security, and service efficiency.
Entrepreneurs are invited to submit proposals by December 15, 2024, detailing potential benefits, costs, risks, and plans for stakeholder engagement.
“This announcement reinforces our commitment to bold, new ideas and positions Detroit as a leader where entrepreneurs can thrive,” said Onwenu, who believes blockchain can foster innovation in public services while maintaining accessibility and security.
Detroit’s embrace of cryptocurrency fits a growing trend in the U.S., as some cities and states begin accepting crypto for various services. When Detroit’s initiative launches, it will join cities like Miami Lakes, Florida, and Williston, South Dakota, which already offer crypto payment options for civic services.
At the state level, Colorado, Louisiana, and Utah have pioneered similar initiatives, typically using vendors like PayPal and BitPay to process transactions.
The announcement also comes shortly after Donald Trump’s recent election as U.S. President, with the cryptocurrency sector now looking forward to a pro-crypto administration and clearer regulatory policies.
By taking this pioneering step, Detroit not only sets an example for other cities but also establishes itself as a forward-thinking hub, ready to harness technological innovation and seize economic opportunities in the blockchain era.