Detroit will accept cryptocurrency for taxes next year, according to officials, who revealed the city’s plans to embrace crypto payments for municipal fees.
Managed through a secure platform by PayPal, this initiative makes Detroit the largest US city to adopt digital assets payment for civic transactions.
The City of Detroit Adopts Crypto For Tax Payments
The new payment option, set to launch in mid-2025, is part of a broader strategy to position Detroit as a hub for technological innovation and economic growth. Mayor Mike Duggan emphasized the significance of this shift. He framed it as a milestone in Detroit’s journey to becoming a forward-thinking, tech-friendly city.
“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 US cities to explore blockchain civic applications and allow residents to use their cryptocurrency as a payment option,” Duggan shared.
Detroit’s adoption of cryptocurrency payments is about more than just innovation. It is an effort to make city services more accessible and financially inclusive. The new PayPal-managed platform will accept popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Further, it will convert payments into US dollars automatically, effectively mitigating risks tied to crypto’s price volatility.
PayPal’s experience with crypto adds stability. As the chosen platform provider, PayPal brings valuable expertise to the project. The payment giant entered the cryptocurrency market in October 2020, allowing US users to buy, hold, and sell assets like Bitcoin and Ethereum within the app.
Read more: How To Buy PayPal Stablecoin (PYUSD)
Since then, PayPal has steadily expanded its crypto offerings, even launching a US dollar-backed stablecoin, PYUSD, in August 2023. This record of accomplishment gives city officials confidence that PayPal’s platform will ensure a secure and stable payment experience for Detroit residents.
Treasurer Nikhil Patel highlighted the initiative’s benefits for residents and city operations. He said the city expects the new system to streamline payments. According to Patel, this shift will also reduce costs associated with cash transactions and make payments more accessible to a wider range of residents.
Partnering with Innovators on Blockchain Civic Solutions
Detroit is also actively seeking proposals from blockchain entrepreneurs and developers on civic project collaborations. Justin Onwenu, the city’s newly appointed Director of Entrepreneurship and Economic Opportunity, is leading this outreach effort.
Detroit’s administration believes blockchain could play a vital role in enhancing transparency, data security, and efficiency across city operations.
“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,” said Onwenu.
Accordingly, the city has opened an invitation for proposals, encouraging developers to submit their ideas by December 15, 2024. The projects will be evaluated based on their potential to streamline services, benefit residents, and contribute to Detroit’s economic revitalization.
Detroit has joined a select but expanding group of U.S. government entities that accept cryptocurrency for public payments. States such as Colorado, Utah, and Louisiana have already implemented crypto options for state taxes and fees, but Detroit stands out as the largest city to embrace this approach. Its move could serve as a model for other major cities contemplating similar initiatives.
By integrating crypto payments, Detroit demonstrates a willingness to adopt emerging technologies and positions itself as a leader in municipal blockchain applications. This shift comes at a pivotal time, aligning with the current administration’s positive stance on the crypto industry, as highlighted by BeinCrypto.
“Trump’s presidency has crypto on the rise. As Detroit sets to accept crypto payments for taxes, could other US cities be far behind,” said LADT in a Medium post.
Read more: How To Fund Innovation: A Guide to Web3 Grants
Experts are already optimistic about the industry’s potential to thrive under the new administration. Specifically, they anticipate opportunities for innovation and global crypto legitimacy under Trump’s presidency.
“DeFi will get better regulatory treatment — no more harassment and potentially even enabling things like fee switches or network-based dividends,” one X user stated.
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Source: https://beincrypto.com/detroit-to-accept-crypto-payments-for-taxes/