Cryptocurrencies will be accepted as payment for public services, such as taxes and other levies, by Detroit residents beginning in mid-2025. PayPal, a payments behemoth, will oversee the transmission of the transactions via a “secure platform.”
Detroit’s officials declared on Thursday that they intend to establish a precedent by becoming the largest city in the United States to accept cryptocurrency for city fees and taxation.
“We are thrilled to be among the first major U.S. cities to investigate the civic applications of blockchain technology and enable residents to utilize their cryptocurrency as a payment method,” stated Detroit Mayor Mike Duggan.
The announcement did not specify the cryptos that Detroit intends to recognize. However, it is evident that Detroit would initially incorporate these cryptocurrencies, as PayPal accepts tokens such as Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and native PayPal USD.
The release acknowledged that the City’s larger strategy includes the incorporation of a crypto payment option. It would promote economic development, strengthen civic engagement, and improve public services.
Additionally, the City of Detroit has extended an invitation to blockchain entrepreneurs and visionaries to present their concepts for civic applications. The City is particularly interested in initiatives that capitalize on the potential of blockchain to improve data security and transparency.
Two additional US localities, Williston, South Dakota, and Miami Lakes, Florida, already accept cryptocurrency payments for city levies and utilities. Furthermore, the states of Colorado, Utah, and Louisiana recognize cryptocurrency as a form of payment for state services.
Three days following Donald Trump’s election as the 47th President of the United States, Detroit has implemented a new initiative.
30 percent of adults in the metro Detroit area were unbanked, as per the Federal Reserve Bank of Cleveland’s report, Unbanked in America: A Review of the Literature. Additionally, the unbanked’s primary motivations include their desire for increased privacy and their lack of confidence in banks.
Aiming to modernize payment channels and processes, the City of Detroit Treasurer Nikhil Patel has stated. He also stated that this would increase internal operational efficiency and improve the customer experience.
“Furthermore, the platform enhancement will simplify the process of making electronic payments for Detroit residents, including those who may not have access to the banking system.”
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