Detroit to Accept Crypto Tax Payments via PayPal in 2025

Detroit residents will soon have the option to pay their taxes and other city fees using cryptocurrency through PayPal. This announcement was made by Detroit’s Office of the Treasury on Thursday.

The new cryptocurrency payment system is set to launch in mid-2025 and will utilize a secure payment platform managed by PayPal. The city will accept several cryptocurrencies supported by PayPal, including bitcoin, ether, bitcoin cash, litecoin, and PayPal’s stablecoin, PayPal USD. However, all cryptocurrency transactions will ultimately be settled in U.S. dollars.

Largest U.S. City to Accept Crypto Payments

Once implemented, Detroit will become the largest city in the United States to accept cryptocurrency payments for taxes and fees. Currently, only a few other cities, such as Miami Lakes in Florida and Williston in South Dakota, along with states like Colorado, Utah, and Louisiana, have begun accepting crypto payments for certain municipal services. These jurisdictions typically partner with third-party payment processors, such as PayPal or BitPay, to convert cryptocurrency into U.S. dollars.

Embracing New Technologies for Economic Growth

Detroit's decision to allow cryptocurrency payments is part of a broader initiative to adopt new technologies aimed at stimulating economic growth and attracting blockchain and tech companies to the city.

Mayor Mike Duggan expressed enthusiasm about the initiative, stating, "Detroit is building a technology-friendly environment that empowers residents and entrepreneurs." He highlighted the city's excitement about exploring blockchain applications for civic purposes, allowing residents to utilize their cryptocurrencies for payments.

Call for Blockchain Innovation

In addition to the new payment option, Detroit is inviting crypto entrepreneurs to propose ideas for blockchain applications focused on enhancing transparency, improving data security, and streamlining public services. Justin Onwenu, the city’s first Director of Entrepreneurship and Economic Opportunity, emphasized the city's commitment to fostering innovation, stating, "This announcement represents our openness to new ideas and dedication to positioning Detroit as a place for entrepreneurs and bold ideas to thrive."

The introduction of cryptocurrency payments in Detroit marks a significant step towards integrating digital currencies into municipal operations, reflecting the city's proactive approach to technology and economic development.