Detroit to Become Largest U.S. City to Accept Cryptocurrency Payments for Taxes and Fees

Detroit residents will soon have the option to pay taxes and city fees using cryptocurrency, with transactions facilitated through a secure platform managed by PayPal. City officials announced this development today, which positions Detroit as the largest U.S. city to accept cryptocurrency payments for municipal fees.

The initiative is part of a broader city strategy to leverage innovative technologies that improve public services, strengthen civic engagement, and support economic growth. By adopting cryptocurrency as a payment method, Detroit aims to simplify transactions for residents and attract blockchain and technology entrepreneurs eager to make a difference in the city.

“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs,” said Detroit Mayor Mike Duggan. “We are excited to be one of the first major U.S. cities to explore blockchain’s civic applications and to give residents the option to pay with cryptocurrency.”

According to Treasurer Nikhil Patel, the cryptocurrency payment option will be available in mid-2025 alongside upgrades to other city payment services. “The Treasurer’s Office is committed to modernizing our payment channels to enhance customer experience and operational efficiency,” Patel explained. “This platform upgrade will improve accessibility for Detroiters who want to use cryptocurrency and make electronic payments easier overall, especially for those who may be unbanked.”

Detroit also invites blockchain entrepreneurs to submit proposals for civic applications of blockchain technology. Justin Onwenu, Detroit’s first Director of Entrepreneurship and Economic Opportunity, is spearheading this call for innovation, seeking proposals for projects that could boost transparency, data security, and efficiency in public services. Entrepreneurs have until December 15, 2024, to send their proposals to pitchdetroit@detroitmi.gov. Submissions should include a description of the project, potential stakeholders, costs, risks, and anticipated benefits for Detroit residents.

“This announcement reflects our openness to new ideas and commitment to making Detroit a hub for entrepreneurial innovation,” said Onwenu. “Blockchain technologies have the potential to enhance accessibility, efficiency, transparency, and security, and we’re eager to engage with entrepreneurs leading in this space.”

With this new policy, Detroit joins a small group of U.S. states — Colorado, Utah, and Louisiana — that accept cryptocurrency for state payments, marking a significant step toward broader municipal adoption of digital currencies.

Resources:

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