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Yesterday, the city of Detroit, in Michigan, announced that it will become the largest city in the USA to accept payments in Bitcoin and cryptocurrencies for taxes.
It did so with an official statement published on its website.
Summary
Detroit, Michigan USA: in arrivo il pagamento di tasse con Bitcoin
Michigan is one of the swing states that gave the electoral victory to Donald Trump.
With the 15 electoral votes won in Michigan, and the 19 won in Pennsylvania, Trump has risen above the 270 mark, which is the threshold needed to be elected the new president.
In particular, Detroit, which is the largest city in Michigan (whose capital is Lansing), is the so-called “automobile city,” as it is home to the three main U.S. automotive companies.
Detroit is a relatively small city, with fewer than 700,000 inhabitants, and with a working-class past that, however, in recent decades has left it with some big problems to solve, due to deindustrialization.
In 2020 in Michigan Trump had lost, while in 2016 he had won, so his victory this year also depends precisely on the narrow triumph in Michigan, where he obtained less than one hundred thousand votes more than Harris out of over 5 million voters.
Detroit and Bitcoin
Until today, neither the city of Detroit nor the State of Michigan had seemed particularly crypto-friendly.
On the other hand, however, no particular news had emerged from that territory that would suggest there was hostility towards criptovalute.
Probably the victory of Trump was needed to bring out the crypto-friendly faction of the current administration.
The current mayor of Detroit is the Democrat Mike Duggan, elected even 10 years ago and now in his third consecutive term.
Duggan is a lawyer and entrepreneur, and he was the Prosecutor of Wayne County from 2001 to 2004 and CEO of the Detroit Medical Center until 2010.
Before now, he had never publicly expressed favorable positions towards Bitcoin.
On his official X profile, he also did not mention the announcement from the city he administers, which announced the possibility of paying taxes in cryptocurrencies.
The initiative of Detroit
The official press release states that the residents of Detroit starting from mid-2025 will have the opportunity to pay taxes using cryptocurrencies through a secure platform managed by PayPal.
This will make Detroit the largest city in the United States to accept payments in cryptocurrencies, at least so far.
They write:
“This innovative payment option is part of a broader strategy by the city to explore innovative technologies that could enhance public services, strengthen civic engagement, and promote economic growth. The initiative not only simplifies transactions with the city for Detroit residents but also marks Detroit’s commitment to welcoming blockchain and technology entrepreneurs who want to make a difference in the city”.
The mayor Duggan commented by saying that Detroit is building a technology-friendly environment that empowers residents and entrepreneurs, and that they are therefore excited to be one of the first major cities in the USA to explore the civic applications of blockchains, and to allow residents to use their own cryptocurrencies as a payment option.
Therefore, Duggan is not only in favor of the initiative, of course, but he has also expressed enthusiasm about it. However, he has not made any public statements about it on his personal channels.
The treasurer of the city, Nikhil Patel, added:
“The treasurer’s office is committed to modernizing our payment channels and processes to enhance the customer experience and improve internal operational efficiency. This new payment platform will increase accessibility for the citizens of Detroit who wish to use cryptocurrencies; more importantly, the platform upgrade will make it easier for the citizens of Detroit to make electronic payments, including those who may not have a bank account”.
Detroit and Innovation
For an ex-industrial city that is trying to find a new vocation, innovation risks being the only viable path for a relaunch.
In fact, in addition to the payment of taxes in Bitcoin and cryptocurrencies, the city of Detroit has also invited entrepreneurs and blockchain innovators to present their ideas for civic applications. The city also has a director of entrepreneurship and economic opportunities, Justin Onwenu.
In particular, Detroit is looking for projects that leverage the potential of blockchain to improve transparency, enhance data security, and streamline public services.
Onwenu stated:
“This announcement represents our openness to new ideas and our dedication to positioning Detroit as a place where entrepreneurs and bold ideas can thrive. Blockchain technologies have the potential to drive greater accessibility, efficiency, transparency, and security, and we are excited to hear from the entrepreneurs at the forefront of this work”.