Detroit sets a national precedent by becoming the largest U.S. city to accept crypto for municipal taxes and fees.
City officials announced on November 7 that residents will be able to pay for these expenses with cryptocurrencies starting in mid-2025 via 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 allowing crypto payments, the city aims to streamline transactions for residents and open doors to unbanked or underbanked communities that may face barriers in traditional banking services.
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 U.S. cities to explore civic applications of blockchain and enable residents to use cryptocurrency as a payment option.
The move comes as other cities and states experiment with crypto payments. However, Detroit’s decision to allow them access to a wider range of city services sets it apart, positioning it as a pioneer among larger municipalities.
Financial accessibility
Detroit Treasurer Nikhil Patel stressed the importance of accessible services and modernized payment options.
He said:
“The Office of the Treasurer is committed to modernizing our payment channels to improve the customer experience and improve internal operational efficiencies. This platform will increase accessibility for Detroit residents who want to use cryptocurrency and will also simplify electronic payments for all residents, including those who may be unbanked.
According to recent data, approximately 4.5% of American households do not have access to traditional banking services. By offering crypto as a payment option, Detroit hopes to reach these residents and provide a smoother transaction process.
Invitation to innovation
Detroit is also opening its doors to blockchain entrepreneurs who can help improve municipal services. Contractors are encouraged to submit proposals by December 15, describing solutions that harness blockchain’s potential for transparency, security and efficiency in public services.
Detroit Director of Entrepreneurship and Economic Opportunity Justin Onwenu said:
“Blockchain technologies have the potential to improve accessibility, efficiency, transparency and security, and we are excited to hear from the entrepreneurs at the forefront of this work. »
Detroit’s adoption 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.
