Detroit residents will be able to use cryptocurrencies to pay for public services, including taxes and other fees, starting in mid-2025. Transactions will be conducted through a “secure platform” managed by payments giant PayPal.
City officials announced Thursday that Detroit intends to set a precedent by becoming the largest US city to accept cryptocurrencies in city taxes and fees.
“We are excited to be one of the first major cities in the US to explore civic applications of blockchain and allow residents to use cryptocurrency as a payment option,” – Detroit Mayor Mike Duggan said.
The announcement did not mention which cryptocurrencies Detroit plans to accept. However, given that PayPal accepts tokens including Bitcoin, Ethereum, Bitcoin Cash, Litecoin and native PayPal USD, it is known that Detroit will initially include these cryptocurrencies.
The release notes that including cryptocurrency payment options is part of the city’s broader strategy. It would improve public services, strengthen civic engagement and foster economic growth.
In addition, the City of Detroit has also invited blockchain entrepreneurs and innovators to submit their ideas for civic applications. The city is particularly interested in projects that leverage the potential of blockchain to increase transparency and data security.
Two other cities in the U.S. – Miami Lakes in Florida and Williston in South Dakota – already accept cryptocurrency payments for city fees and utilities. In addition, the states of Colorado, Utah and Louisiana accept cryptocurrency payments for state payments. Detroit’s new initiative comes three days after the election of Donald Trump as the 47th US president.
According to a Federal Reserve Bank of Cleveland report, Unbanked in America: A Review of the Literature, 30% of adults in the Detroit metropolitan area did not have a bank account. In addition, the main reasons among those without a bank account are a lack of trust in banks and a desire for greater privacy.
According to Detroit City Treasurer Nikhil Patel, the city aims to modernize payment channels and processes. He added that this would improve the customer experience and increase internal operational efficiency.
“More importantly, updating the platform will make it easier for Detroit residents to make electronic payments – including those who may not have a bank account.”
