- Detroiters will soon be able to pay their taxes and other city fees with crypto through PayPal, starting in mid-2025.
- Once implemented, Detroit will be the largest U.S. city to accept crypto payments, joining a few other cities and states that already do.
- Detroit is also requesting crypto entrepreneurs to pitch their ideas for blockchain “civic applications” to enhance transparency, improve data security, and streamline public services.
The city of Detroit announced on Thursday that it will start accepting cryptocurrency for tax and fee payments through PayPal starting in 2025. This makes Detroit the largest U.S. city so far to embrace crypto payments.
Detroit Partners With PayPal For Crypto Payments
Detroit’s Office of the Treasury said in its announcement that the new crypto payment option will be offered through “a secure payment platform managed by PayPal.” The payment processor will convert crypto to U.S. dollars before passing the funds to the city.
The city did not specify which cryptocurrencies it plans to accept. PayPal currently supports bitcoin, ether, bitcoin cash, litecoin, and its own stablecoin PayPal USD.
Detroit To Be Largest U.S. City Accepting Crypto
Once the payment option goes live in 2025, Detroit will become the biggest U.S. city in terms of population to accept cryptocurrency for payments.
Currently, only two smaller cities – Miami Lakes, Florida and Williston, South Dakota – take crypto payments for taxes and fees through third-party processors like PayPal and BitPay. At the state level, Colorado, Utah and Louisiana accept crypto payments.
Embracing Tech To Spur Economic Growth
Detroit said the move to allow crypto payments aligns with its broader efforts to embrace new technologies, attract blockchain companies, and drive economic growth.
“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs,” said Mayor Mike Duggan. “We are excited to be one of the first major U.S. cities to explore blockchains civic applications and allow residents to use their cryptocurrency as a payment option.”
The city is also asking crypto entrepreneurs to pitch ideas for blockchain “civic applications” that can improve transparency, data security and efficiency of public services.
Conclusion
By partnering with PayPal to accept crypto tax payments starting in 2025, Detroit aims to position itself as an attractive hub for tech innovation and blockchain entrepreneurship. The city views this as key to spurring economic growth.
