In a bid to modernize its payment systems and attract blockchain companies, Detroit will soon allow residents to pay their taxes and other city services using cryptocurrency. The city announced the initiative on November 7, with plans to implement the system by mid-2025.
Crypto Payments via PayPal
The new payment option will be facilitated through a secure platform managed by PayPal, though the city did not specify which cryptocurrencies will be accepted. PayPal currently supports major cryptocurrencies, including Bitcoin, Ether, Bitcoin Cash, Litecoin, and its own stablecoin, PayPal USD.
A Step Toward Modernization
Detroit’s move to accept crypto is part of a broader effort to modernize its payment infrastructure and improve operational efficiency. Mayor Mike Duggan emphasized that the city is striving to become more technology-friendly and to position itself as a hub for blockchain innovation.
“We are excited to be one of the first major US cities to explore blockchain’s civic applications,” said Duggan, highlighting the city’s commitment to making it easier for residents and entrepreneurs to engage with emerging technologies.
Encouraging Blockchain Innovation
In addition to the crypto payment initiative, the city is inviting blockchain entrepreneurs to pitch ideas for civic blockchain applications. The deadline for proposals is December 15, with applications to be submitted via email to Justin Onwenu, Detroit’s Director of Entrepreneurship and Economic Opportunity.
Onwenu expressed excitement over blockchain’s potential to improve accessibility, efficiency, transparency, and security, and urged innovators to contribute ideas that could help propel the city forward.
Detroit Joins Growing List of Crypto-Friendly Cities
Once implemented, Detroit will join a growing list of U.S. cities and states offering crypto payments for taxes and city services, including Miami Lakes, Florida, and Williston, South Dakota. States like Colorado and Louisiana have also made strides in integrating cryptocurrency into civic services.
Trump Administration’s Impact on Crypto
This announcement comes just days after Donald Trump‘s victory in the 2024 presidential election, sparking expectations within the crypto industry for the introduction of pro-crypto policies under his administration. Among these anticipated changes are potential actions like the removal of SEC Chairman Gary Gensler and the creation of a national Bitcoin reserve.
Conclusion
Detroit’s move to accept cryptocurrency payments for taxes and city fees marks a significant step toward blockchain adoption in the public sector. With support from platforms like PayPal, the initiative is set to bring digital assets into the mainstream of local government transactions, fostering a more modern and efficient approach to municipal payments.
