Detroit Becomes Largest US City to Accept Crypto for Taxes via PayPal, Starting Mid-2025

Detroit to Accept Crypto Payments for Taxes and City Fees via PayPal

Starting in mid-2025, residents of Detroit will be able to pay their taxes and city fees using cryptocurrency, according to a recent announcement from the city’s Office of the Treasury.

This new payment method, powered by PayPal’s secure platform, is part of the city’s broader initiative to embrace emerging technologies.

The move makes Detroit the largest U.S. city to offer crypto payments, which will bring the city in line with a growing number of municipalities looking to integrate blockchain technology into their operations.

What Cryptocurrencies Will Be Accepted?

While the city has not disclosed exactly which cryptocurrencies it plans to accept, PayPal typically supports only a select few tokens.

These include Bitcoin, Ether, Bitcoin Cash, Litecoin, and PayPal’s own stablecoin, PayPal USD.

This limited scope is consistent with PayPal’s current offering, which aims to facilitate easy and secure crypto transactions, converting payments into U.S. dollars at the point of transaction.

Detroit’s Effort to Become a Tech Hub

Detroit’s decision to accept cryptocurrency payments is more than just a new payment option; it’s part of a broader push to position the city as a technology-friendly hub.

Mayor Mike Duggan expressed excitement about the move, highlighting that Detroit aims to create an environment that supports tech innovation and attracts blockchain and cryptocurrency companies:

“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs,” said Duggan.

He added:

“We are excited to be one of the first major U.S. cities to explore blockchain’s civic applications and allow residents to use their cryptocurrency as a payment option.”

Blockchain’s Role in Public Services and Transparency

In addition to allowing crypto payments, Detroit is actively encouraging entrepreneurs in the blockchain space to pitch new ideas for using the technology to improve public services.

Justin Onwenu, Detroit’s first Director of Entrepreneurship and Economic Opportunity, spoke about the potential of blockchain to drive efficiency and security in public services.

Onwenu commented:

“Blockchain technologies have the potential to drive greater accessibility, efficiency, transparency, and security.”

He also mentioned that the city is looking for solutions that could enhance transparency, improve data security, and streamline public services.

The city is specifically focused on how blockchain can be leveraged to enhance civic functions, making the operations more transparent and secure for residents.

Detroit’s outreach to blockchain entrepreneurs reflects its willingness to adopt innovative technologies and create an environment conducive to bold new ideas.

Growing Trend of Crypto Adoption in U.S. Cities

Detroit joins a small but growing list of cities and states embracing cryptocurrency payments.

Miami Lakes in Florida and Williston in South Dakota are among the few cities already accepting crypto for taxes and fees, as well as states like Colorado, Utah, and Louisiana.

These areas have partnered with third-party services such as PayPal and BitPay, which convert crypto payments into traditional U.S. dollars at the point of sale.

This practice is gaining momentum as more local governments experiment with how blockchain can improve efficiency and open new revenue streams.

Will Crypto Become the Standard for Paying Taxes?

Detroit's adoption of crypto payments is a bold step that could signal the beginning of a much broader trend.

As more cities and states experiment with blockchain technology, it raises the question whether cryptocurrency will become a standard method for paying taxes and bills globally.

While early adoption is promising, the challenges of mainstream acceptance, regulatory concerns, security, and market volatility are still potential hurdles.

Could this initiative become the norm in the future, or simply a short-lived experiment?

With the pace of technological change, global governments might follow suit, but it is uncertain whether this shift is sustainable and scalable.

Meanwhile, are we ready for a world where paying our taxes in crypto is as common as using a credit card?