Detroit to Introduce Cryptocurrency as Payment Option for Taxes and Fees

Detroit residents will soon be able to pay their taxes and other city fees with cryptocurrency as part of the city’s drive to modernize and attract blockchain businesses.

According to the local Office of Treasury, when it launches in mid-2025, this new payment option will make Detroit the largest U.S. city to accept cryptocurrency payments.

Broader Tech Initiative

In a November 7 release, city officials said the new crypto options would be offered through a secure payment platform managed by PayPal. However, the announcement did not specify which cryptocurrencies the city would accept as payment.

Detroit’s new crypto transaction option is part of a broader effort to integrate technology that improves city services, boosts civic engagement, and drives economic growth.

“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs,” said Mayor Mike Duggan. He added that they were enthusiastic about being among the first major U.S. cities to explore blockchain technology’s civic uses and provide residents with the option to pay with cryptocurrency.

Treasurer Nikhil Patel noted that the new system, set to launch in mid-2025, will be accompanied by other improvements to city payment channels. The upgrades aim to improve accessibility for residents, particularly those who prefer using cryptocurrency or lack traditional banking options. The platform also aims to improve the customer experience and boost internal operational efficiency.

Open Call for Blockchain Innovators

The city has also announced an open call for blockchain entrepreneurs to present their ideas for civic applications of blockchain technology. Justin Onwenu, Detroit’s Director of Entrepreneurship and Economic Opportunity, will oversee the initiative. Entrepreneurs interested in submitting proposals have until December 15 to email their ideas to the city.

“Blockchain technologies have the potential to drive greater accessibility, efficiency, transparency, and security, and we’re excited to hear from entrepreneurs at the forefront of this work,” said Onwenu.

Detroit’s new initiative aligns the city with a growing number of U.S. cities and states that accept cryptocurrency for payments. Colorado became the first state to accept cryptocurrency for tax payments in 2022, with Utah and Louisiana following suit.

Cities like Williston, North Dakota, and Miami Lakes, Florida, also allow residents to pay certain city fees with cryptocurrency, with many partnering with companies like BitPay and PayPal for secure transactions.

The development also follows the recent election of crypto-friendly Donald Trump as U.S. President, which has potentially positive implications for the industry. During his election campaign, the newly elected president consistently supported cryptocurrency and promised to foster the sector’s growth.