Detroit to become largest city in U.S. to accept crypto as payment for taxes, city fees

DETROIT - Starting next year, residents in Detroit will be able to use cryptocurrency to pay taxes and other city fees through a platform that will be managed by PayPal.

"Detroit is building a technology-friendly environment that empowers residents and entrepreneurs, said Detroit Mayor Mike Duggan in a statement. "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."

Once the program is implemented, Detroit will become the largest city in the country to accept cryptocurrency for payments. City officials say the move is part of a larger strategy to explore how technology can enhance public services, while strengthening civic engagement, and fosterer economic growth. Officials also believe it shows a commitment by Detroit to be a welcoming environment for blockchain and technology entrepreneurs in the area.

"The Treasurer's Office is committed to modernizing our payments channels and processes to enhance the customer experience and improve internal operational efficiency," said Treasurer Nikhil Patel. "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."

While an exact date for when cryptocurrency will begin being accepted for city payments hasn't been announced, the plan is to begin offering the service in mid-2025.

Along with announcing plans to accept cryptocurrency, the City is also asking blockchain entrepreneurs to pitch ideas on how blockchain can be used for other civic services. In particular, officials want to hear ideas on how blockchain can be used to enhance transparency, improve data security, and streamline public services.

Proposals can be sent to the city until Dec. 15 and should include "proposed solutions, potential stakeholders, costs, risks and should also outline how their ideas will improve city services and benefit city residents," according to the city.