'Building a technology-friendly environment': Detroit to accept cryptocurrency payments in 2025

Detroit announced it is on track to become the largest city in the U.S. to accept cryptocurrency as a form of payment for taxes and other fees.

The city said it is using a secure platform managed by PayPal for the new crypto payment option, which city residents will be able to begin using by the middle of 2025, according to a Nov. 7 press release.

Cryptocurrency is a digital currency that is cryptographically sent from one blockchain network user to another, according to the National Institute of Standards and Technology.

“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs,” Detroit Mayor Mike Duggan said in a statement. “We are excited to be one of the first major U.S. cities to explore blockchains civic applications and allow residents to use their cryptocurrency as a payment option.”

The new payment platform is also designed to make it easier for residents to make electronic payments, according to Detroit Treasurer Nikhil Patel.

Another goal for the move to cryptocurrency is to encourage blockchain entrepreneurs to explore public projects that enhance transparency, improve data security and streamline public services.

“This announcement represents our openness to new ideas and dedication to positioning Detroit as a place for entrepreneurs and bold ideas to thrive,” stated Justin Onwenu, Detroit’s director of Entrepreneurship and Economic Opportunity, a position created by the city this past year to help drive entrepreneurial growth. 

“Blockchain technologies have the potential to drive greater accessibility, efficiency, transparency, and security and we’re excited to hear from entrepreneurs at the forefront of this work,” Onwenu added.

Only three U.S. states accept cryptocurrency as a form of payment, including Utah, Louisiana and Colorado. Colorado became the first state to accept cryptocurrency for tax payments in 2022. Cities currently accepting crypto-based payments also include Williston, N.D., and Miami Lakes, Fla.

According to a Pew Research Center survey conducted earlier this year, 17% of U.S. adults said they have invested in, traded or used cryptocurrency, a statistic that was unchanged from a similar poll in 2021. Meanwhile, as of early 2024, 63% of Americans said they were not confident in the reliability or safety of cryptocurrency. The currency’s value also suffered its worst drop since 2021 this past summer, according to Fortune.

However, with the reelection of President Donald Trump this week, the value of Bitcoin, perhaps the most recognizable form of cryptocurrency, soared to record highs, according to Investopedia. The president-elect has made promises to ease federal cryptocurrency regulations and turn the nation into “the crypto capital of the planet.”