Detroit will become the largest US city to accept crypto to pay taxes and fees

Detroit will become the largest city in the United States to accept cryptocurrency payments, city officials announced Thursday. Residents can pay taxes and other city fees using crypto through a secure platform managed by PayPal.

“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs," Mayor Mike Duggan said in a release . “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 option will become available in mid-2025, along with additional improvements to city payment services, said Treasurer Nikhil Patel. It's part of a larger strategy by the city of Detroit to explore innovative technologies that could enhance public services, strengthen civic engagement, and foster economic growth.

"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," Patel said.

Detroit has a population of around 630,000 residents as of the 2020 U.S. census, making it the country's 26th most populous city. Detroit was once the fourth-most populous city, with nearly 2 million people in the 1950s

Three U.S. states — Colorado, Utah and Louisiana — accept cryptocurrency for state payments. The cities of Miami and New York City , in particular, have expressed strong interest in crypto, with the latter even creating its own MiamiCoin . However, neither accepts crypto as a form of payment

According to the release, two U.S. cities—Williston, North Dakota, and Miami Lakes, Florida—currently accept crypto-based payments.

Detroit is also inviting blockchain entrepreneurs to pitch their ideas for blockchain civic applications to the city's director of entrepreneurship and economic opportunity. The city is interested in projects that leverage blockchain’s potential for enhancing transparency, improving data security, and streamlining public services, according to the release.