Highlights:
- Detroit will allow residents to pay taxes and fees with crypto next year.
- Mayor Duggan aims to create a tech-friendly environment, supporting both residents and entrepreneurs.
- Detroit invites blockchain entrepreneurs to propose civic solutions, boosting public services and growth.
Detroit will soon allow residents to pay taxes and other city fees with cryptocurrency. The move will position Detroit as the largest U.S. city to accept cryptocurrency payments for public services. In a Nov. 7 statement, the Detroit Treasury announced that new crypto payment options would be available through a secure payment platform managed by PayPal starting in mid-2025.
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JUST IN: 🇺🇸 Detroit, Michigan to become largest US city to accept #Bitcoin and crypto as payment for taxes. pic.twitter.com/NzrXFrDAbn
— Bitcoin Magazine (@BitcoinMagazine) November 7, 2024
Detroit Embraces Cryptocurrency to Modernize Payments and Foster Tech Growth
Detroit announced that crypto payments will help modernize its payment channels, enhancing efficiency and attracting blockchain companies. Mayor Duggan expressed strong support, emphasizing the city’s commitment to a tech-friendly environment that benefits both residents and entrepreneurs.
Duggan stated:
“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs. We are excited to be one of the first major US cities to explore blockchain’s civic applications and allow residents to use their cryptocurrency as a payment option.”
City Treasurer Nikhil Patel highlighted that the new platform will improve accessibility for Detroit residents. It will especially benefit those who are unbanked or prefer digital payment options. The announcement did not reveal which cryptocurrencies would be accepted. However, PayPal currently supports major cryptocurrencies like Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), and its stablecoin, PayPal USD (PYUSD).
This initiative comes after the recent election of crypto-supporter Donald Trump as President. His win has fueled optimism in the crypto industry for supportive policies and clearer regulations. Anticipated changes include replacing SEC Chair Gary Gensler and creating a national strategic Bitcoin reserve.
Detroit Seeks Blockchain Solutions to Boost Public Services and Economic Growth
Along with the new payment system, the city invites blockchain entrepreneurs to present their unique civic solutions. These presentations will be directed to Detroit’s newly appointed Entrepreneurship and Economic Opportunity Director, Justin Onwenu. The initiative aims to establish Detroit as a hub for blockchain-driven economic development and innovation in public service.
Applicants can submit their proposals to Justin Onwenu by December 15 this year. Proposals can be emailed to pitchdetroit@detroitmi.gov. Proposals should include a description of the solution, stakeholder identification, cost estimates, and risk assessments. They should also outline how the solution will improve city services and benefit Detroit residents.
Onwenu said:
“Blockchain technologies have the potential to drive greater accessibility, efficiency, transparency, and security and we’re excited to hear from entrepreneurs at the forefront of this work.”
Detroit Joins Growing List of Cities Adopting Crypto Payments
According to the 2020 U.S. census, Detroit’s population is around 630,000, ranking it as the 26th most populous city. In the 1950s, it was the fourth-largest, with nearly 2 million residents.
Detroit joins a growing list of cities adopting crypto payments. Miami Lakes in Florida and Williston in South Dakota accept crypto for certain services. However, Detroit will be the largest city in the United States to adopt this approach. Miami and New York showed strong crypto support. Meanwhile, three U.S. states, Colorado, Utah, and Louisiana, already accept crypto for state taxes.
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