Detroit to Accept Bitcoin for Tax Payments, Partners with PayPal for Citywide Crypto Use

Key Takeaways:

  • Detroit intends to accept Bitcoin and other cryptocurrencies for city tax and fee payments by mid-2025.
  • The initiative aims to serve Detroit's large unbanked population, estimated at thirty percent.
  • Detroit follows several other cities and states already accepting cryptocurrency for government payments.

On November 7, Detroit announced its move to accept Bitcoin and other popular cryptocurrencies for city tax and fee payments. This initiative aims to position Detroit as a tech-forward city and boost local economic growth. 

The new payment platform, managed by PayPal, is set to launch by mid-2025 and will initially accept popular tokens such as Bitcoin and Ethereum, though additional options may be included.

Detroit Becomes Largest U.S. City to Accept Bitcoin for City Payments

In the official announcement, Detroit’s Mayor Mike Duggan expressed optimism about the city’s initiative, stating, “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 platform, he added, will provide residents with a secure and efficient way to manage city-related payments using cryptocurrency.

In a push toward fostering a tech-friendly environment, Detroit’s new crypto initiative also emphasizes economic inclusivity. 

According to the Federal Reserve Bank of Cleveland’s report, about 30% of adults in the metro Detroit area are unbanked.

Detroit’s Treasurer, Nikhil Patel, explained that modernizing payment channels could help make city services more accessible for all residents, including those without traditional banking access.

“More importantly, the platform upgrade will make it easier for Detroiters to make electronic payments – including those who may be unbanked,” said Patel, noting the significance of crypto’s accessibility.

Detroit Encourages Innovation and Transparency Amid  Growing Trend of Crypto-Friendly Cities

Detroit is also inviting blockchain entrepreneurs and innovators to propose ideas that could support city operations by improving transparency, data security, and operational efficiency. 

The Director of Entrepreneurship and Economic Opportunity, Justin Onwenu, emphasized that Detroit seeks to become a destination for forward-thinking entrepreneurs, particularly in blockchain technology.

“Blockchain technologies have the potential to drive greater accessibility and efficiency,” Onwenu stated, expressing interest in projects that could bring transparency and security to Detroit’s public services.

Moreover, Detroit joins other U.S. cities, including Miami Lakes, Florida, and Williston, South Dakota, which already accept Bitcoin payments for city fees. States such as Colorado, Utah, and Louisiana also allow crypto for state-level payments.

Detroit’s initiative comes shortly after Donald Trump’s recent election victory, which rallied Bitcoin price to a new all-time high of over $75,000. 

Some analysts suggest that Trump’s pro-crypto stance could further support local governments adopting crypto-friendly policies across the U.S.

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