Starting in mid-2025, Detroit residents will be able to pay taxes and city fees using cryptocurrency, marking a significant step in the city’s effort to modernize its payment systems and attract blockchain businesses. The announcement from Detroit’s Office of Treasury emphasizes the city’s ambition to create a tech-friendly environment and embrace innovative payment solutions.
Modernizing Detroit’s Payment System with Crypto
In a statement released on Nov. 7, Detroit’s Treasury Office confirmed that a new “secure payment platform managed by PayPal” will enable crypto payments for taxes and other city services. While details on specific cryptocurrencies were not provided, PayPal currently supports several major digital assets, including Bitcoin. This initiative is part of a larger plan to modernize payment channels, boost operational efficiency, and attract blockchain companies to the city.
Detroit Mayor Mike Duggan highlighted the initiative’s importance, stating, “Detroit is building a technology-friendly environment that empowers residents and entrepreneurs. We are excited to be one of the first major U.S. cities to explore blockchain’s civic applications and allow residents to use cryptocurrency as a payment option.”
Encouraging Blockchain Innovation and Entrepreneurship
Along with the new payment option, Detroit is actively inviting blockchain innovators and entrepreneurs to pitch their ideas for using blockchain in civic applications. Justin Onwenu, Detroit’s director of entrepreneurship and economic opportunity, will oversee the submission process, with interested parties asked to submit their proposals by Dec. 15.
Onwenu emphasized the potential of blockchain to “drive greater accessibility, efficiency, transparency, and security,” expressing excitement about hearing new ideas from the blockchain community.
Joining Other Cities in Embracing Cryptocurrency for Civic Payments
Detroit will join a growing list of U.S. cities and states that accept cryptocurrency for taxes and city services, including Miami Lakes, Florida, and Williston, South Dakota. States like Colorado and Louisiana also accept crypto payments through third-party vendors such as PayPal and BitPay, making digital asset transactions easier for citizens.
The timing of Detroit’s announcement follows closely on the heels of the recent election of crypto-friendly Donald Trump as U.S. president. Many in the industry are hopeful that Trump’s administration will implement more crypto-friendly policies, increase regulatory clarity, and potentially establish a national Bitcoin reserve.
