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This initiative, announced yesterday, aims to modernize payment options and position Detroit as a hub for technological innovation.
The city plans to collaborate with PayPal to facilitate these transactions. Residents will have the option to pay taxes and other city fees using cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and PayPal’s USD-backed stablecoin. PayPal will handle the conversion of these digital assets into U.S. dollars, ensuring that the city receives payments in fiat currency and mitigates the risks associated with cryptocurrency volatility.
This innovative payment option is part of a larger strategy by the City to explore innovative technologies that could enhance public services, strengthen civic engagement, and foster economic growth. The initiative not only makes it easier for Detroit residents to transact with the City but also marks Detroit’s commitment to welcoming blockchain and technology entrepreneurs who want to make a difference in the city.
A Technology-friendly Environment
“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs, said Detroit Mayor Mike Duggan. “We are excited to be one of the first major U.S. cities to explore blockchains civic applications and allow residents to use their cryptocurrency as a payment option.”
The payment option will become available in mid 2025 along with additional improvements to city payment services, said Treasurer Nikhil Patel.
“The Treasurer’s Office is committed to modernizing our payments channels and processes to enhance the customer experience and improve internal operational efficiency,” Patel said. “This new payment platform will increase accessibility for Detroiters who would like to use cryptocurrency; more importantly, the platform upgrade will also make it easier for Detroiters to make electronic payments – including those who may be unbanked.”
“This announcement represents our openness to new ideas and dedication to positioning Detroit as a place for entrepreneurs and bold ideas to thrive, said Justin Onwenu, City of Detroit Director of Entrepreneurship and Economic Opportunity. “Blockchain technologies have the potential to drive greater accessibility, efficiency, transparency, and security and we’re excited to hear from entrepreneurs at the forefront of this work.”
The Detroit Skyline, Source: Wiki Commons
This move aligns Detroit with other U.S. cities and states exploring cryptocurrency payments. For instance, Miami Lakes, Florida, and Williston, South Dakota, have already begun accepting crypto payments for city fees and utilities. Additionally, states like Colorado, Utah, and Louisiana have implemented similar measures for state payments.
Detroit’s decision to accept cryptocurrency payments reflects a growing trend among municipalities to integrate digital assets into public finance. As cryptocurrencies gain mainstream acceptance, cities like Detroit are leveraging technology to improve financial inclusivity and streamline payment processes for their residents.