Detroit residents will be able to pay taxes with cryptocurrency starting in 2025

What’s new? Starting in 2025, Detroit authorities will begin accepting cryptocurrency to pay taxes and other fees through a secure platform managed by payment company PayPal. According to Mayor Mike Duggan, the move will create a tech-friendly environment that empowers residents and entrepreneurs and will make Detroit the largest city in the country to allow residents to use their cryptocurrency as a payment method.

Press release

What else is known? The option will become available in mid-2025 along with additional improvements to the city’s payment services. The new platform will make it easier for Detroit residents to make electronic payments, including those without bank cards.

It is part of a larger strategy by city officials to introduce innovative technologies that could improve public services, increase citizen engagement, and promote economic growth.

According to the 2020 Census, Detroit, Michigan, is home to about 630 000 people, making it the 26th most populous city in the country.

Detroit used to be the largest center of the automobile industry and the fourth-largest city in the United States in terms of population: in the 1950s, almost 2 million people lived here. However, amid the auto industry crisis and the 1973 oil crisis, the city declined — factories closed, people moved to other cities, and crime increased. On the Internet, it is often referred to as a ghost town.

With financial technology initiatives, the authorities aim to stimulate economic development. The press release notes that the city is interested in projects that use the potential of blockchain to increase transparency and security of data and optimize public services. Moreover, the authorities called on industry representatives to share their ideas for applying blockchain for civic purposes.

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Entrepreneurs will be able to submit proposals by December 15, and they should include a description of the proposed solutions, potential stakeholders, costs, risks, and potential to improve city services.

“This announcement represents our openness to new ideas and dedication to positioning Detroit as a place for entrepreneurs and bold ideas to thrive. 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,” the officials noted.

Many experts note that Donald Trump’s victory in the presidential election will promote the institutional adoption of cryptocurrencies and the creation of a clear regulatory framework for them. During his election campaign, the politician himself spoke about the need to make the United States a global center for blockchain technology.

Currently, three US states — Colorado, Utah, and Louisiana — accept cryptocurrency for government payments. Miami and New York have also shown great interest in cryptocurrency, but have not yet introduced such an option.