Detroit Becomes Largest US City To Accept Bitcoin And Crypto For Tax Payments

On Thursday, Detroit announced plans to become the largest city in the United States to accept Bitcoin and other cryptocurrencies for tax payments. According to local media reports, residents will be able to make payments through a platform managed by PayPal from mid-2025 as the city looks to modernize its payment systems.

Detroit’s Cryptocurrency Move

Mayor Mike Duggan expressed excitement about the initiative, emphasizing Detroit’s commitment to fostering a “technology-friendly environment” that supports residents and entrepreneurs. Duggan stated:

Detroit is building a technology-friendly environment that empowers residents and entrepreneurs. We are excited to be one of the first major US cities to explore blockchain’s civic applications and allow residents to use their cryptocurrency as a payment option.

The Motor City Treasurer, Nikhil Patel, highlighted the initiative’s role in payment channels and improving customer experience, claiming that the Treasurer’s Office is committed to modernizing processes to improve customer experience and internal operational efficiencies.

The introduction of cryptocurrency payments aims to increase accessibility for Detroit residents, including those who may be unbanked, by providing more options for electronic payments.

Detroit’s decision places it among a select group of jurisdictions embracing cryptocurrency for governmental transactions. Only three US states—Colorado, Utah, and Louisiana—currently accept cryptocurrency for state payments.

Is Bitcoin Set To Become A Key Pillar Of 2025 Economic Policy?

In conjunction with the cryptocurrency payment announcement, Detroit is also inviting blockchain entrepreneurs to pitch ideas for civic applications of the technology.

Justin Onwenu, the city’s first director of entrepreneurship and economic opportunity, spearheads this initiative as the city seeks projects that harness blockchain’s potential to enhance transparency, improve data security, and streamline public services. Onwenu remarked:

This announcement represents our openness to new ideas and dedication to positioning Detroit as a place for entrepreneurs and bold ideas to thrive. 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.

The announcement comes on the heels of substantial investments in cryptocurrency from Michigan’s state retirement system. Recent filings revealed over $6.9 million invested in the ARK/21Shares Bitcoin ETF and an additional $10 million in Ethereum ETFs.

However, with Donald Trump’s victory in the presidential election on November 5, similar moves can be expected from other jurisdictions for 2025-2029. The now 47th President of the United States made key promises during his campaign, including making Bitcoin a strategic reserve asset for the country.

While Trump has vowed to make the US the “crypto capital of the world,” with Bitcoin at the heart of every speech he has made in recent months, he has also suggested that taxes on Bitcoin and other crypto transactions could be eliminated during his upcoming White House administration.