(CBS DETROIT) – Starting in 2025, Detroit residents will have the option to pay their taxes and other city fees with cryptocurrency, the city announced Thursday, making Detroit the largest city in the US to accept cryptocurrency for taxes.
City officials said payments will be made through a secure platform and managed by PayPal.
“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs,” Detroit Mayor Mike Duggan said in a statement. “We are excited to be one of the first major US cities to explore civic applications of blockchains and enable residents to use their cryptocurrency as a payment option.”
City Treasurer Nikhil Patel said the payment option will become available in mid-2025, but did not provide an exact date when the option will be launched.
“The Treasurer’s Office is committed to modernizing our payment channels and processes to enhance the customer experience and improve internal operational efficiencies,” said Patel. “This new payment platform will increase accessibility for Detroiters looking to use cryptocurrency; More importantly, the platform upgrade will also make it easier for Detroiters to make electronic payments – including those who may be unbanked.”
Other municipalities that accept cryptocurrency as payment include Williston, North Dakota, where residents can pay utility bills with cryptocurrency, and Miami Lakes, Florida, where residents can pay for city services such as licenses and permits, according to the city.
In addition to the new payment option, the city also invites blockchain entrepreneurs and innovators to pitch ideas for blockchain social applications. Officials say they are interested in “projects that leverage the potential of blockchain to increase transparency, improve data security and streamline public services.”
As of November 2024, three states will accept cryptocurrency for state payment: Colorado, Louisiana and Utah. In September 2022, Colorado became the first state to allow its residents to pay state taxes using cryptocurrency.
