Detroit will become the largest U.S. city to accept cryptocurrency for tax and fee payments starting in mid-2025. Announced yesterday, this move aims to modernize payment options and position Detroit as a leader in technology.
In partnership with PayPal, Detroit will allow residents to pay taxes and other city fees with cryptocurrencies like Bitcoin, Ethereum, Litecoin, and PayPal’s USD-backed stablecoin. PayPal will convert these digital currencies into U.S. dollars to ensure the city receives payments in a stable form, protecting against crypto value changes.
This initiative is part of Detroit’s broader plan to use technology to improve public services, boost community engagement, and support economic growth. By accepting crypto, Detroit is creating new payment options for residents and showing its commitment to innovation, making the city more attractive to tech entrepreneurs.
A Technology-Friendly Approach
“Detroit is creating a technology-friendly space for both residents and entrepreneurs,” said Mayor Mike Duggan. “We’re thrilled to be one of the first major cities to explore blockchain uses and offer cryptocurrency as a payment option.”
The city plans to roll out this option in mid-2025, along with other updates to its payment services. “Our goal is to modernize payment channels to make transactions easier for Detroiters, including those who may not have a bank account,” said City Treasurer Nikhil Patel.
“This is about openness to new ideas,” added Justin Onwenu, Detroit’s Director of Entrepreneurship. “Blockchain technology can boost accessibility, efficiency, transparency, and security. We’re excited to work with entrepreneurs at the cutting edge of these innovations.”
This decision aligns Detroit with other U.S. cities and states like Miami Lakes, FL, and Colorado, which have also adopted crypto for certain city payments. Detroit’s move reflects a growing trend among cities to use digital assets, enhancing financial inclusivity and making payments more convenient for residents.
