Detroit residents will soon have the innovative option to settle their taxes and other municipal fees using cryptocurrency, thanks to a secure platform managed by PayPal. This move is part of a broader strategy by city officials to leverage cutting-edge technology to enhance public services, boost civic engagement, and stimulate economic growth.
Mayor Mike Duggan expressed his enthusiasm for this development, stating, “Detroit is creating a technology-friendly environment that empowers residents and entrepreneurs. We are thrilled to be at the forefront of US cities exploring blockchain’s civic applications and enabling residents to use cryptocurrency as a payment option.”
The ability to pay with cryptocurrency is expected to be operational by mid-2025, along with further improvements to the city’s payment services, according to Treasurer Nikhil Patel. Patel emphasized the Treasurer’s Office’s commitment to modernizing payment channels and processes to enhance the customer experience and internal operational efficiency.
Moreover, the new payment platform will enhance accessibility for Detroit residents interested in using cryptocurrency, including those who may be unbanked. This upgrade will make it easier for residents to make electronic payments, ensuring a smoother transaction process for all.
In a bid to further embrace blockchain technology, the City of Detroit is inviting blockchain entrepreneurs and innovators to submit proposals for civic applications that utilize blockchain technology. The city is particularly interested in projects that enhance transparency, data security, and streamline public services.
Entrepreneurs have until December 15, 2024, to submit their proposals via email. Proposals should outline the proposed solutions, potential stakeholders, costs, risks, and demonstrate how their ideas will improve city services and benefit residents.
Justin Onwenu, the City of Detroit’s Director of Entrepreneurship and Economic Opportunity, highlighted the city’s commitment to fostering innovation, stating, “This announcement reflects our openness to new ideas and dedication to positioning Detroit as a hub for entrepreneurs and bold ideas to thrive.”
By introducing cryptocurrency payments for city fees and taxes, Detroit is set to become the largest US city to adopt this payment method, joining states like Colorado, Utah, and Louisiana in embracing cryptocurrency for state transactions.
Several municipalities and states in the US have started experimenting with crypto-based payments, including Colorado, Utah, and Louisiana, at the state level, and cities like Williston, North Dakota, and Miami Lakes, Florida, at the municipal level.
While cities like Miami and New York have shown support for cryptocurrency, they currently do not accept it for municipal payments. Miami, under Mayor Francis Suarez, introduced “MiamiCoin,” but its use is limited to other purposes, not city payments.
With a crypto-friendly administration heading to the White House, Detroit’s initiatives are likely to usher in a wave of crypto and digital asset adoption across the US, shaping the future of payments and technology.
