Detroit becomes largest US city to accept cryptocurrency

Detroit is set to become the largest US city to accept cryptocurrency payments for taxes and other municipal fees, beginning in mid-2025.

The move is part of a larger initiative by Detroit’s Treasury Department to modernise the city’s payment platform, making it easier for residents to conduct business with the city while highlighting Detroit’s openness to innovative technologies.

“The city is currently working on upgrading its payment platform technology to improve overall customer experience and internal operational efficiency. As part of this technology upgrade the city will be able to offer a plethora of payment options,” Nikhil Patel, the city’s Treasurer told Cities Today.

By upgrading the payment system and incorporating PayPal’s services, Detroit will offer a range of payment options, including cryptocurrency, while ensuring that all payments settle in US dollars to eliminate the risk of cryptocurrency volatility.

“The city will not possess crypto as an asset on its balance sheet at any point,” Patel added, securing Detroit’s finances from regulatory uncertainties.

The upgraded platform will also address accessibility challenges for underbanked and unbanked residents, allowing them to make property tax payments in cash at retail locations throughout southeastern Michigan. Through PayPal’s integration, cash can be converted to digital currency at cashier locations, enabling residents to process tax payments without needing a traditional bank account.

“It’s important to note the best way to address accessibility and inclusion issues in the long term is to equip residents with the know-how, guidance, and technology to help themselves remove their own barriers,” Justin Onwenu, Detroit’s Director of Entrepreneurship and Economic Opportunity told Cities Today.

By empowering more residents to interact with city services digitally, the platform upgrade aims to foster a more efficient and inclusive community.

And in addition to cryptocurrency payments, Detroit is calling on blockchain innovators to help develop new applications for civic services.

“Blockchain technologies have been used in the private sector to spur greater efficiency, transparency, and accessibility,” said Onwenu. “The City of Detroit wants to be a partner with innovators and entrepreneurs, so we don’t want to limit the scope of the ideas quite yet.”

Detroit is particularly interested in blockchain applications that improve transparency, data security, and public service delivery.

Proposals for blockchain-based solutions can be submitted by 15 December. With this initiative, Detroit is aiming to position itself as a leading city for technological advancement, underscoring its commitment to both innovation and resident accessibility.

Image: Dusan Zidar | Dreamstime.com