Detroit Set to Accept Crypto Payments for Taxes and Fees, Becoming the Largest US City to Do So

The initiative will begin in mid-2025 and aims to attract tech-savvy businesses and residents. It will also elevate the city's payment systems.

Detroit is set to become the largest US city to accept cryptocurrency for taxes and fees, in a move that will also see the Motor City integrate blockchain technology to streamline payments.

The initiative, first announced in 2023, will see Detroit begin accepting crypto for various municipal payments from mid-2025. The aim is to attract tech-savvy businesses and residents, and elevate the city’s payment systems.

Residents will be able to pay utility bills, municipal fees, and other expenses using a PayPal-managed platform. The payments will then be converted into US dollars upon receipt by the city.

This means that customers are exposed to minimal market fluctuations, and the initiative will be closely monitored by the city before being rolled out fully.

Detroit joins a growing number of municipalities in the United States that are accepting cryptocurrency for government payments. States like Louisiana, Colorado, and Utah have already picked crypto over fiat for select government payments.

Detroit Mayor Mike Duggan said the city is dedicated to technological innovation, and the initiative to accept crypto is part of a broader strategy.

“We’re building a tech-friendly environment in Detroit that empowers entrepreneurs and our residents,” Duggan said in a statement.

“We’re also inviting blockchain entrepreneurs to build projects in Detroit that enhance data security, public service efficiency, and transparency.”

Authorities expect that accepting crypto will streamline transactions and boost payment compliance. It will especially bode well with businesses investing in digital finance and the younger generation of residents.

The adoption of technology like crypto and blockchain provides benefits like reduced fees and quick transactions. However, they also pose challenges like regulatory concerns and price volatility.

Detroit plans to mitigate these issues by converting crypto payments into US dollars upon receipt. This ensures that the city is not exposed to crypto price volatility.

Detroit treasury department officials have already established collaborations with blockchain experts to avoid cybersecurity concerns.

Detroit will roll out its pilot program in the coming months, and citywide integration is expected to be completed by late 2025.

Other cities are also engaging tech-based communities to drive the economy. Hence, Detroit’s implementation of the technologies will offer a case study for cities trying to execute similar measures.