Detroit To Accept Crypto For Taxes And Fees In Bid To Attract Blockchain Firms

Detroit is set to become one of the first major US cities to allow residents to pay taxes and city fees using cryptocurrency.

The move aims to modernize the city’s financial systems and attract blockchain-focused companies to Detroit, according to a 7 November 2024 announcement from the city’s Office of Treasury.

The new payment option, expected to roll out by mid-2025, will be facilitated through a secure platform managed by PayPal. While details on specific cryptocurrencies were not provided, PayPal currently supports Bitcoin, Ether, Bitcoin Cash, Litecoin, and its own stablecoin, PayPal USD.

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Detroit Mayor Commits To Drive Economic Growth

Mayor Mike Duggan said that the initiative is part of a broader strategy to foster technological innovation and economic growth. “Detroit is building a technology-friendly environment that empowers residents and entrepreneurs,” Duggan said in a statement.

“We are excited to be one of the first major U.S. cities to explore blockchain’s civic applications and allow residents to use cryptocurrency for payments.”

In addition to enabling crypto payments, Detroit has invited blockchain entrepreneurs to propose ideas for civic applications of blockchain technology.

Interested parties have until Dec. 15 to submit their proposals to Justin Onwenu, the city’s director of entrepreneurship and economic opportunity.

Onwenu emphasized the potential of blockchain to enhance transparency, efficiency, and security in municipal operations. “We’re excited to hear from entrepreneurs at the forefront of this work.”

DETROIT UNVIELS CRYPTO’S NEW TAX PLAY

Detroit just pulled a power move: by 2025 you can settle taxes and city fees with your digital bags.

The Motor City is now the biggest town in the US to accept crypto as tax payments.

Mayor Duggan said it's all about being… pic.twitter.com/q1lXBGpYdM

— Mario Nawfal’s Roundtable (@RoundtableSpace) November 8, 2024

By adopting cryptocurrency payments, Detroit joins a growing list of US cities and states embracing blockchain technology for civic services. Miami Lakes, Florida, and Williston, South Dakota, already accept crypto for various municipal payments.

States like Colorado and Louisiana also allow cryptocurrency transactions for select government services, often partnering with platforms like PayPal or BitPay.

The announcement coincides with the election of Donald Trump, a president known for his crypto-friendly stance.

Industry analysts predict his administration will introduce policies favoring the cryptocurrency sector, including potential regulatory reforms, dismissal of current SEC Chair Gary Gensler, and discussions around a strategic national Bitcoin reserve.

Detroit’s foray into crypto payments underscores its ambition to position itself as a hub for blockchain innovation while providing residents with more flexible payment options.

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Crypto Adoption Reaches Record Levels

Cryptocurrency usage has soared to unprecedented levels. Furthermore, it shows no signs of slowing down, according to a  report by venture capital giant Andreessen Horowitz .

The report estimates that the number of global cryptocurrency owners has hit a new high of 617 million this year. Moreover, 30 to 60 million active users have been engaging with crypto regularly.

In another report, digital asset technology platform Aspen Digital revealed that a growing number of Asia-based  private wealth managers are embracing cryptocurrencies , with some predicting that Bitcoin could reach $100,000 by the end of this year.

The report said that digital assets are becoming a popular investment option among Asia’s private wealth sector, with 76% of family offices and high-net-worth individuals (HNWIs) currently invested in cryptocurrencies.

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