Detroit will become the largest US city to accept crypto for tax and fee payments, an initiative aimed at positioning the city as a tech-friendly hub and promoting economic growth.
From mid-2025, residents will be able to pay with popular cryptos such as Bitcoin and Ethereum via a platform managed by PayPal. announced Thursday.
The payment option is part of Detroit’s broader strategy to modernize municipal services and promote financial inclusion, especially for residents with limited access to traditional banking.
“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs,” Mayor Mike Duggan said in a statement. “We are pleased to be one of the first major U.S. cities to explore the civic applications of blockchain.”
To minimize the risks of crypto price volatility, payments on PayPal are converted into US dollars before reaching city accounts.
PayPal entered the crypto market in October 2020, announcing that US customers could buy, hold and sell various assets, including Bitcoin, Ethereum, Bitcoin Cash and Litecoin, directly through their PayPal accounts. The service was later expanded to the United Kingdom in August 2021.
In August 2023, PayPal introduced its own US dollar-backed stablecoin, PYUSD. In April, it began allowing its US customers to tap PYUSD payments abroad.
In addition to payment solutions, Detroit is inviting blockchain innovators to propose civic applications for the technology, the statement said.
Justin Onwenu, Detroit’s director of entrepreneurship and economic opportunity, welcomed ideas that could improve the transparency, safety and efficiency of city operations.
“Blockchain technologies have the potential to drive greater accessibility and efficiency,” Onwenu said in the statement, adding that Detroit aims to be a destination for forward-thinking entrepreneurs.
Detroit’s move follows similar initiatives by other states, including Colorado, Utah and Louisiana, where crypto payments are accepted for certain public services.
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