Detroit will become the largest U.S. city to accept Bitcoin for tax payments, launching a secure platform by 2025.
Detroit announced plans to become the largest U.S. city to accept Bitcoin and crypto payments for taxes and other municipal fees, with the initiative expected to launch in mid-2025. The new payment option, facilitated through a "secure platform" managed by PayPal, aims to increase accessibility for residents and support Detroit’s broader technology and innovation strategy.
In a statement, Mayor Mike Duggan emphasized Detroit’s commitment to fostering a tech-friendly environment. “We are excited to be one of the first major U.S. cities to explore blockchain’s civic applications and allow residents to use cryptocurrency as a payment option,” Duggan said. This move is part of Detroit’s broader effort to explore advanced technologies that could improve public services, boost civic engagement, and drive economic growth.
Detroit Treasurer Nikhil Patel highlighted the potential impact of the new platform on city residents, especially those who are unbanked or prefer digital payment methods. “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,” Patel stated.
Detroit, with a population of around 630,000, will join three U.S. states—Colorado, Utah, and Louisiana—that currently accept Bitcoin for certain state payments. The city also follows in the footsteps of smaller U.S. cities, such as Williston, North Dakota, which accept crypto payments for various municipal services. Despite Miami and New York City’s interest in Bitcoin, neither currently accepts it for official payments.
The city has set a deadline of December 15, 2024, for proposals, which will be evaluated based on their potential to enhance transparency, strengthen data security, and streamline public services. This outreach aims to position Detroit as a hub for innovation, creating a welcoming environment for entrepreneurs and tech-forward businesses.