Detroit to Become Largest U.S. City to Accept Cryptocurrency for Tax and Fee Payments

Detroit is set to become the largest U.S. city to accept cryptocurrency for tax and fee payments. Starting in mid-2025, residents will be able to make payments using cryptocurrency through a platform managed by PayPal, as announced by city officials today.

This initiative is part of Detroit’s broader strategy to embrace new technologies aimed at improving public services and driving economic growth. Michigan, in particular, has been taking a pro-crypto stance recently, with the State of Michigan Retirement System investing $6.6 million in ARK 21Shares’ ARKB spot Bitcoin ETF.

According to city officials, Detroit aims to create a more tech-friendly environment for both residents and blockchain entrepreneurs looking to contribute to civic solutions.

Mayor’s Statement

Mayor Mike Duggan commented on the move, saying, “Detroit is building a technology-friendly environment that empowers residents and entrepreneurs. We’re excited to allow residents to use cryptocurrency as a payment option.”

Treasurer’s Insights

Detroit’s Treasurer, Nikhil Patel, explained that the crypto-payment platform is part of the city’s ongoing efforts to modernize its payment systems. The goal is to make payments more accessible, particularly for those without traditional banking services. Patel emphasized that this platform upgrade will also make electronic payments easier for Detroit residents, including those who are unbanked.

“This new payment platform will increase accessibility for Detroiters who would like to use cryptocurrency; more importantly, the platform upgrade will also make it easier for Detroiters to make electronic payments – including those who may be unbanked,” Patel said.

Blockchain Innovation and City Services

In addition to implementing the crypto-payment system, Detroit is inviting blockchain innovators to pitch ideas for blockchain applications that could enhance city services. These proposals should focus on improving transparency, data security, and other benefits for city residents.

Detroit Joins Other Crypto-Friendly States

With this move, Detroit joins a growing number of U.S. states such as Colorado, Utah, and Louisiana, which already accept cryptocurrency for public payments.

Detroit’s adoption of cryptocurrency for city payments signals a significant step toward modernizing public services and encouraging innovation in the blockchain space.