Detroit Pioneers Crypto Tax Payments Among Major U.S. Cities, Partners with PayPal for 2025 Launch
Detroit is set to make history as the largest U.S. city to accept cryptocurrency for tax and municipal fee payments, marking a significant step in mainstream crypto adoption at the municipal level. The initiative, announced by Detroit’s Office of the Treasury, will launch in mid-2025 through a secure payment platform managed by PayPal.
The program will accept five cryptocurrencies currently supported by PayPal: Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and PayPal’s own stablecoin, PayPal USD. To protect against cryptocurrency volatility, all payments will be converted to U.S. dollars before reaching city accounts.
“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs,” Mayor Mike Duggan stated in the announcement. “We are excited to be one of the first major U.S. cities to explore blockchain’s civic applications and allow residents to use their cryptocurrency as a payment option.”
The initiative extends beyond just payment options. City Treasurer Nikhil Patel emphasized that the platform upgrade aims to enhance accessibility for all residents, particularly those who are unbanked. This modernization effort aligns with Detroit’s broader strategy to embrace innovative technologies for improving public services and fostering economic growth.
In a parallel development, the city is actively seeking blockchain entrepreneurs to propose innovative civic applications. Justin Onwenu, Detroit’s Director of Entrepreneurship and Economic Opportunity, has issued an open call for proposals focusing on enhancing transparency, improving data security, and streamlining public services. Interested entrepreneurs have until December 15, 2024, to submit their proposals.
Detroit joins a select group of U.S. jurisdictions accepting cryptocurrency payments. Currently, only two other cities – Miami Lakes, Florida, and Williston, South Dakota – accept crypto payments for municipal services, while three states – Colorado, Utah, and Louisiana – have implemented similar programs at the state level. Notably, while crypto-friendly cities like Miami and New York have expressed strong interest in cryptocurrency adoption, neither currently accepts crypto payments for municipal services.
This initiative positions Detroit at the forefront of municipal crypto adoption, potentially setting a precedent for other major U.S. cities considering similar programs. The move comes as cryptocurrency continues to gain mainstream acceptance, with recent developments in the crypto market and regulatory landscape potentially influencing municipal adoption strategies.
