Detroit to Accept Cryptocurrency for Taxes and Other City Fees, Becoming the First Major U.S. City to Do So

Residents would have the option to use cryptocurrencies to pay for utilities through a secure platform managed by PayPal.

Detroit will soon become the first major U.S. city to accept cryptocurrency for taxes and other city fees, top officials from the city announced in a press release on Thursday.

Here's what happened: Residents will be able to use cryptocurrencies to pay for utilities through a secure platform that is powered by PayPal. This initiative is part of a broader strategy to leverage blockchain technology to enhance public services and boost civic engagement in the city.

“Detroit is fostering a technology-friendly environment that empowers residents and entrepreneurs,” said Detroit Mayor Mike Duggan. “We are thrilled to be among the first major U.S. cities to explore blockchain’s civic applications and offer residents the option to use cryptocurrency for payments.”

See Also: Can Blockchain Improve Cross-Border Payments Without Regulatory Roadblocks?

The new payment option is expected to be available by mid-2025, according to Treasurer Nikhil Patel. The city will also encourage blockchain innovators to submit their ideas for civic applications to Justin Onwenu, Detroit's first Director of Entrepreneurship and Economic Opportunity.

In a note shared with Benzinga, Patel said that payments could be made in cryptocurrencies that are accepted by PayPal Crypto, including Bitcoin, Ethereum, Litecoin (CRYPTO: LTC), and the new PayPal stablecoin, PayPal USD (CRYPTO: PYUSD).

Currently, Williston in North Dakota and Miami Lakes in Florida accept cryptocurrencies for utility bill payments, while Colorado and Utah allow their residents to pay state taxes using digital assets.

Detroit's move to accept cryptocurrency payments comes amid growing interest in cryptocurrencies in the state of Michigan.

As reported by Benzinga, the Michigan State Pension Fund disclosed in a recent SEC filing that it had invested $10 million in Grayscale Ethereum Trust ETF (NYSE:ETHE), the largest Ethereum (CRYPTO: ETH) exchange-traded fund (ETF) as of this writing.

This surpassed its $7 million allocation in Bitcoin (CRYPTO: BTC) ETFs. Earlier in May, the University of Michigan's endowment increased its investments in cryptocurrency, following the footsteps of Harvard and Yale. The university invested in a crypto fund from Andreessen Horowitz, indicating a growing acceptance of digital currencies among large funds and endowments.

Photo: Linda Parton/Shutterstock.com

This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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