Detroit will soon allow its residents to pay their taxes and other city fees with cryptocurrency as the city looks to “modernize” and attract blockchain companies to the city, according to an announcement from Detroit’s Office of Treasury.
In a Nov. 7 statement, the Detroit Treasury said the new crypto payment options would be offered through a “secure payment platform managed by PayPal” from mid-2025.
The announcement did not clarify which cryptocurrencies Detroit would accept as payment, but PayPal currently provides support for a small number of major crypto assets, including Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), and its own in-house stablecoin PayPal USD (PYUSD).
Detroit said the move to accept crypto was part of a broader push to “modernize” its payment channels and improve its internal operational efficiency as well as encourage blockchain companies to move to the city.
“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs. We are excited to be one of the first major US cities to explore blockchain’s civic applications and allow residents to use their cryptocurrency as a payment option,” said Detroit Mayor Mike Duggan in a statement.
Alongside announcing the new crypto as payment options, Detroit said it’s inviting blockchain entrepreneurs and innovators to “pitch their ideas for blockchain civic applications” to Justin Onwenu, the city’s director of entrepreneurship and economic opportunity.
Applicants looking to pitch Detroit with civic blockchain ideas will have until Dec. 15 to lodge their ideas to the city via email.
“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.
Once Detroit begins accepting crypto, it will join a growing roster of United States cities and states that also accept crypto for taxes and city services payments, including Miami Lakes in Florida and Willston in South Dakota.
Colorado and Louisiana also accept crypto to varying degrees for civic services and typically partner with a third-party payment vendor such as PayPal or BitPay to do so.
Detroit’s new initiative comes three days after crypto-friendly Donald Trump was elected President.
The crypto industry is now anticipating a swathe of pro-crypto policies and regulatory clarity to be introduced under the Trump administration, including firing the current SEC Chair Gary Gensler and potentially introducing a national strategic Bitcoin reserve.