Detroit Pioneers Crypto Tax Payments Through PayPal Partnership

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Detroit partners with PayPal to become America's largest city accepting cryptocurrency for taxes and municipal fees starting mid-2025.

Detroit is set to become America's largest city to accept cryptocurrency for taxes and municipal fees through a new PayPal-powered platform launching in mid-2025. The groundbreaking initiative positions the city at the forefront of blockchain adoption in public services.

"We're pioneering the civic applications of blockchain technology by enabling cryptocurrency payments for our residents," announced Detroit Mayor Mike Duggan. While specific cryptocurrencies weren't detailed, the integration with PayPal suggests support for Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and PayPal USD.

The initiative extends beyond payment modernization, forming part of Detroit's comprehensive strategy to enhance civic engagement and stimulate economic growth. The city has also opened its doors to blockchain innovators, seeking proposals for projects that could improve governmental transparency and data security.

Detroit joins a growing list of crypto-friendly jurisdictions, including Miami Lakes (Florida) and Williston (South Dakota), as well as the states of Colorado, Utah, and Louisiana, which already accept cryptocurrency for various public payments.

Addressing Financial Inclusion

The program particularly targets Detroit's significant unbanked population, estimated at 30% of metro area adults according to the Federal Reserve Bank of Cleveland. City Treasurer Nikhil Patel emphasized that modernizing payment systems will benefit all residents, particularly those who prefer alternatives to traditional banking.

"This upgrade streamlines payment processes while creating new opportunities for unbanked Detroiters to participate in our digital economy," Patel stated.

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Author

Nikolas Sargeant

Nik is a content and public relations specialist with an ever-growing interest in Crypto. He has been published on several leading Crypto and blockchain based news sites. He is currently based in Spain, but hails from the Pacific Northwest in the US.