Detroit sets a national precedent by becoming the largest US city to accept crypto for taxes and city fees.
City officials announced on November 7, residents will be able to pay for these expenses with crypto from mid-2025 through a secure platform managed by PayPal.
This move is part of Detroit’s broader vision to establish itself as a hub for digital innovation and inclusive public services. By enabling crypto payments, the city aims to streamline transactions for residents and open doors to unbanked and underbanked communities that may face barriers to traditional banking.
Mayor Mike Duggan said:
“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs. We are excited to be one of the first major U.S. cities to explore the civic applications of blockchain and enable residents to use cryptocurrency as a payment option.”
This initiative comes as other cities and states experiment with crypto payments. However, Detroit’s move to allow them a broader range of city services sets it apart and positions it as a pioneer among larger municipalities.
Financial accessibility
Detroit Treasurer Nikhil Patel emphasized the importance of accessible services and modernized payment options.
He said:
“The Treasurer’s Office is committed to modernizing our payment channels to enhance the customer experience and improve internal operational efficiencies. This platform will increase accessibility for Detroiters looking to use cryptocurrency and also simplify electronic payments for all residents, including those who may be unbanked.”
According to recent data, approximately 4.5% of US households do not have access to traditional banking. By offering crypto as a payment option, Detroit hopes to reach these residents and provide a smoother transaction process.
Invitation to innovation
Detroit is also opening its doors to blockchain entrepreneurs who can help improve city services. Entrepreneurs are encouraged to submit proposals by December 15, outlining solutions that leverage blockchain’s potential for transparency, security and efficiency in public services.
Detroit’s director of entrepreneurship and economic opportunity, Justin Onwenu, said:
“Blockchain technologies have the potential to drive greater accessibility, efficiency, transparency and security, and we are excited to hear from entrepreneurs at the forefront of this work.”
Detroit’s embrace of crypto and blockchain is part of a broader strategy to position itself as a hub for technology and innovation, paving the way for other major cities to follow.