Detroit, Michigan’s largest city, announced that residents will soon be able to pay taxes and other city fees using cryptocurrencies, beginning in mid-2025.
The announcement, posted on the city’s official website on November 7, outlines Detroit’s aim to modernize payment options and support economic growth while attracting crypto supporters.
This new payment option will be facilitated through a platform managed by PayPal and, once live, will make Detroit the largest U.S. city to accept cryptocurrency for payments.
As of November 2024, only three U.S. states — Colorado, Utah, and Louisiana — allow cryptocurrency payments for state-related fees.
Colorado pioneered this trend in September 2022, becoming the first state to allow residents to pay state taxes in cryptocurrency. Utah followed suit shortly after, enabling taxpayers to use crypto for state taxes. In September 2024, Louisiana began accepting crypto payments for specific services. All three states use processing systems that convert cryptocurrency payments into U.S. dollars to complete transactions.
Detroit’s statement also opened the door for new ideas related to blockchain technology, inviting proposals through December 15. The city is looking for blockchain-based projects that could improve service efficiency, enhance security, and increase transparency for its residents.
The move places Detroit among a growing number of global cities and countries exploring digital assets and blockchain applications.
Many countries are seeking ways to regulate the industry while promoting technological innovation. Earlier this year, Dubai’s Virtual Asset Regulatory Authority (VARA), under CEO Matthew White, announced efforts to simplify regulations to benefit small crypto businesses.
Meanwhile, in March, Estonia approved a bill to oversee and regulate cryptocurrency service providers in the country. In December 2023, Japan proposed tax reforms that would exempt corporations from taxes on unrealized crypto gains, a step aimed at encouraging long-term investments and fostering Web3 adoption.
