Detroit becomes first city to fully adopt crypto payments for taxes, fees

Detroit is setting a national precedent by becoming the largest US city to accept crypto for taxes and city fees.

City officials announced on Nov. 7 that residents will be able to pay these expenses with crypto starting in mid-2025 through a secure platform operated by PayPal.

The move is part of Detroit’s broader vision to establish itself as a hub for digital innovation and inclusive public services. By enabling crypto payments, the city aims to streamline transactions for residents and open doors for unbanked or underbanked communities who may face barriers in traditional banking.

Mayor Mike Duggan said:

“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 cryptocurrency as a payment option.”

This initiative comes as other cities and states experiment with crypto payments. However, Detroit’s move to enable them for a wider array of city services sets it apart, positioning it as a trailblazer among larger municipalities.

Financial accessibility

Detroit’s Treasurer, Nikhil Patel, emphasized the importance of accessible services and modernized payment options.

He said:

“The Treasurer’s Office is committed to modernizing our payments channels to enhance the customer experience and improve internal operational efficiency. This platform will increase accessibility for Detroiters who want to use cryptocurrency and also simplify electronic payments for all residents, including those who may be unbanked.”

According to recent data, roughly 4.5% of US households lack access to traditional banking. By offering crypto as a payment option, Detroit hopes to reach these residents and provide a smoother transaction process.

Invitation for innovation

Detroit is also opening its doors to blockchain entrepreneurs who can help improve city services. Entrepreneurs are encouraged to submit proposals by Dec. 15, outlining solutions that leverage blockchain’s potential for transparency, security, and efficiency in public services.

Detroit’s Director of Entrepreneurship and Economic Opportunity, Justin Onwenu, said:

“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.”

Detroit’s embrace of crypto and blockchain is part of a broader strategy to position itself as a hub for technology and innovation, paving the way for other major cities to follow.