- By mid-2025, Detroit will accept crypto for tax payments and convert them to USD.
- Detroit is asking blockchain inventors to suggest civic applications.
In a historic step, Detroit will become the largest city in the United States to accept cryptocurrencies for tax and fee payments beginning in mid-2025. The city announced the plan on Thursday, November 7th, aiming to transform Detroit into a tech-friendly hub. The plan also seeks to boost economic growth and update municipal services to improve accessibility for individuals with limited access to traditional banking.
Residents will soon be able to pay taxes and fees using popular cryptocurrencies such as Bitcoin and Ethereum via a PayPal-managed platform, representing a huge step toward Detroit’s aim of a tech-inclusive city. Detroit is creating a technology-friendly environment that will empower residents and entrepreneurs,” said Mayor Mike Duggan. They’re excited to be one of the first major U.S. cities to explore blockchain’s civic applications.
To deal with the inherent volatility of cryptocurrencies, PayPal will automatically convert the payments to US dollars before they reach city accounts, ensuring Detroit’s revenue is consistent and free of financial risk.
PayPal, a crucial partner in the activity, has been active in the cryptocurrency market since October 2020, when it first permitted US users to buy, store, and sell various crypto assets such as Bitcoin and Ethereum. The company expanded its services to the United Kingdom in 2021 and will debut its US dollar-backed stablecoin, PYUSD, in August 2023, offering consumers a stable digital currency for a wider range of applications. PayPal expanded its crypto capabilities in April, enabling consumers to make international payments using PYUSD.
Blockchain Innovation Opportunities in Detroit
In addition to accepting cryptocurrency payments, Detroit is aggressively encouraging blockchain entrepreneurs to submit ideas for civic applications of the technology. According to Justin Onwenu, Detroit’s Director of Entrepreneurship and Economic Opportunity, blockchain technology could improve transparency, security, and efficiency in a variety of local activities. Blockchain technologies have the potential to drive greater accessibility and efficiency, Onwenu stated, highlighting Detroit’s ambition to be a cutting-edge destination for tech entrepreneurs.
Detroit’s move to accept cryptocurrency payments puts it in line with other tech-forward states such as Colorado, Utah, and Louisiana, where digital currencies are already accepted for certain public services.
As Detroit adopts blockchain technology, the city hopes to not only streamline the payment process for individuals but also to establish itself as an innovator in blockchain’s public sector applications, promoting an innovative culture inside the city.
