Detroit to introduce cryptocurrency as payment option for taxes and fees

Detroit residents will soon be able to pay their taxes and other city fees with cryptocurrency as part of the city’s push to modernize and attract blockchain companies.

According to the local Treasurer’s Office, when it launches in mid-2025, this new payment option will make Detroit the largest city in the United States to accept cryptocurrency payments.

Broader technology initiative

In a Nov. 7 statement, city officials said the new crypto options would be offered through a secure payment platform operated by PayPal. However, the announcement did not specify which cryptocurrencies the city would accept as payment.

Detroit’s new crypto transaction option is part of a broader effort to integrate technology that improves city services, boosts civic engagement and drives economic growth.

“Detroit is building a tech-friendly environment that empowers residents and entrepreneurs,” said Mayor Mike Duggan. He added that they were excited to be one of the first major cities in the United States to explore the civic uses of blockchain technology and offer residents the option to pay with cryptocurrency.

Treasurer Nikhil Patel noted that the new system, which will be launched in mid-2025, will be accompanied by other improvements to the city’s payment channels. The updates are aimed at improving accessibility for residents, especially those who prefer to use cryptocurrency or lack traditional banking options. The platform also aims to improve the customer experience and increase internal operational efficiency.

Open Call for Blockchain Innovators

The city has also announced an open call for blockchain entrepreneurs to submit their ideas for civic applications of blockchain technology. Justin Onwenu, Detroit’s Director of Entrepreneurship and Economic Opportunity, will oversee the initiative. Entrepreneurs interested in submitting proposals have until December 15 to email their ideas to the city.

“Blockchain technologies have the potential to drive greater accessibility, efficiency, transparency and security, and we’re excited to hear from the entrepreneurs at the forefront of this work,” Onwenu said.

Detroit’s new initiative aligns the city with a growing number of US cities and states that accept cryptocurrency for payments. Colorado became the first state to accept cryptocurrency for tax payment in 2022, with Utah and Louisiana following suit.

Cities like Williston, North Dakota, and Miami Lakes, Florida also allow residents to pay certain city fees with cryptocurrency, and many partner with companies like BitPay and PayPal for secure transactions.

The development also follows the recent election of cryptocurrency-friendly Donald Trump as US president, which has potentially positive implications for the industry. During his election campaign, the newly elected president consistently supported cryptocurrency and promised to encourage the growth of the sector.

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