Detroit, Michigan is set to become one of the first major US cities to allow residents to pay taxes and city fees using cryptocurrency. The move aims to modernize the city’s financial systems and attract blockchain-focused companies to Detroit. The new payment option, expected to roll out by mid-2025, will be facilitated through a secure platform managed by PayPal.
Detroit Mayor Mike Duggan said that the initiative is part of a broader strategy to foster technological innovation and economic growth. By adopting cryptocurrency payments, Detroit joins a growing list of US cities and states embracing blockchain technology for civic services. Miami Lakes, Florida, and Williston, South Dakota, already accept crypto for various municipal payments.
States like Colorado and Louisiana also allow cryptocurrency transactions for select government services, often partnering with platforms like PayPal or BitPay. The announcement coincides with the election of President Donald Trump, a president known for his crypto-friendly stance. Industry analysts predict his administration will introduce policies favoring the cryptocurrency sector, including potential regulatory reforms, dismissal of current SEC Chair Gary Gensler, and discussions around a strategic national Bitcoin reserve.
Detroit’s foray into crypto payments underscores its ambition to position itself as a hub for blockchain innovation while providing residents with more flexible payment options. Cryptocurrency usage has soared to unprecedented levels, and it shows no signs of slowing down, according to a report by venture capital giant Andreessen Horowitz.
The report estimates that the number of global cryptocurrency owners has hit a new high of 617 million this year, with 30 to 60 million active users engaging with crypto regularly. In another report, digital asset technology platform Aspen Digital revealed that a growing number of Asia-based private wealth managers are embracing cryptocurrencies, with some predicting that Bitcoin could reach $100,000 by the end of this year.
The report said that digital assets are becoming a popular investment option among Asia’s private wealth sector, with 76% of family offices and high-net-worth individuals (HNWIs) currently invested in cryptocurrencies. In conclusion, Detroit’s decision to accept cryptocurrency for taxes and fees is a significant step towards embracing blockchain technology and fostering innovation in the city.
This move not only provides residents with more flexible payment options but also attracts blockchain-focused companies, positioning Detroit as a hub for blockchain innovation.
