In an innovative move, Detroit residents will soon be able to use cryptocurrencies to pay taxes and city fees. Beginning mid-2025, the City of Detroit will partner with PayPal to provide a secure platform for these transactions, making Detroit the largest U.S. city to adopt crypto for civic payments.
“We’re excited to explore blockchain applications in public services, allowing residents to use cryptocurrency as a payment option,” announced Mayor Mike Duggan.
While the announcement didn’t specify which cryptocurrencies will be accepted, PayPal currently supports Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and its native PayPal USD, so it’s likely Detroit will start with these options. This initiative is part of a broader strategy to enhance public services, foster economic growth, and improve civic engagement.
The City has also invited blockchain innovators to propose civic projects, particularly those leveraging blockchain for transparency and data security. With this initiative, Detroit joins cities like Miami Lakes, Florida, and Williston, South Dakota, and states like Colorado, Utah, and Louisiana, which already accept crypto for various fees and utilities.
Detroit’s Commitment to Financial Inclusion
Detroit’s Treasurer, Nikhil Patel, emphasized the city’s commitment to modernizing its payment systems to serve the community better, especially its unbanked population. According to a Federal Reserve Bank of Cleveland report, 30% of adults in the metro Detroit area are unbanked, mainly due to trust issues with banks and a preference for privacy. This crypto payment option could open financial services to these residents, offering them more inclusive and accessible payment channels.
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