US City Detroit to Accept Cryptos for Tax Payments Via PayPal

Detroit residents will be able to use cryptos to pay for public services, including taxes and other fees, starting mid-2025. The transactions will be carried out through a “secure platform” managed by payments giant PayPal.

The City officials announced Thursday that Detroit aims to be a precedent by becoming the largest US City to accept crypto for taxes and city fees.

“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,” said Detroit Mayor Mike Duggan.

The announcement did not mention which cryptos Detroit plans to accept. However, given that PayPal accepts tokens, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and native PayPal USD, it is understood that Detroit would initially include these cryptos.

The release noted that the inclusion of crypto payment option is part of the City’s broader strategy. It would enhance public services, strengthen civic engagement, and foster economic growth.

Furthermore, the City of Detroit has also invited blockchain entrepreneurs and innovators to pitch their ideas for civic applications. The City is particularly interested in projects that leverage blockchain’s potential for enhancing transparency and data security.

Two other US cities — Miami Lakes, Florida, and Williston, South Dakota — already accept crypto payments for city fees and utilities. Additionally, Colorado, Utah and Louisiana states accept crypto for state payments.

Detroit’s new initiative arrives three days after Donald Trump was elected as the 47th US President.

Detroit Aims to Connect the Unbanked

According to the Federal Reserve Bank of Cleveland’s Report, Unbanked in America: A Review of the Literature, 30% of adults in the metro Detroit area were unbanked. Besides, the key reasons among the unbanked include lack of trust in banks and desire for more privacy.

According to the City of Detroit Treasurer Nikhil Patel, the City aims to modernize payment channels and processes. This would enhance the customer experience and improve internal operational efficiency, he added.