Detroit, known for its rich history and vibrant culture, is making waves as it becomes the largest U.S. city to embrace cryptocurrency for tax and fee payments. Starting in mid-2025, residents will have the option to utilize cryptocurrency for payments through a platform managed by PayPal, marking a significant step towards modernizing the city’s payment system.
This forward-thinking initiative is in line with Detroit’s commitment to leveraging new technologies to enhance public services and stimulate economic growth. Michigan as a whole has been leaning towards cryptocurrency adoption, with the State of Michigan Retirement System recently investing $6.6 million in ARK 21Shares’ ARKB spot Bitcoin ETF.
Mayor Mike Duggan expressed enthusiasm about Detroit’s tech-friendly evolution, emphasizing the city’s desire to empower residents and attract blockchain entrepreneurs keen on contributing to civic solutions. “Detroit is building a technology-friendly environment that empowers residents and entrepreneurs,” Mayor Duggan stated. “We’re excited to allow residents to use cryptocurrency as a payment option.”
Nikhil Patel, Detroit’s Treasurer, highlighted that the introduction of cryptocurrency payments is part of ongoing efforts to modernize the city’s payment infrastructure. The Treasurer’s Office aims to enhance accessibility to payments, particularly for individuals without traditional banking services. “This new payment platform will increase accessibility for Detroiters who would like to use cryptocurrency,” said Nikhil Patel. “More importantly, the platform upgrade will also make it easier for Detroiters to make electronic payments – including those who may be unbanked.”
In addition to enabling cryptocurrency payments, Detroit is calling on blockchain innovators to propose ideas for blockchain applications that could enhance city services. These proposals are expected to focus on the potential benefits for city residents, such as improved transparency and data security.
With this progressive step, Detroit joins the ranks of states like Colorado, Utah, and Louisiana that have embraced cryptocurrency for public payments. As the city continues to embrace technological advancements, it is poised to create a more inclusive and efficient payment ecosystem for its residents.