Detroit to Allow Residents to Pay Taxes in Cryptocurrency Starting Mid-2025

Partnering with PayPal, the city seeks blockchain-driven proposals to strengthen public service innovation.

Detroit will become the first major US city to accept cryptocurrency for municipal services, starting mid-2025.

In partnership with PayPal, the city is also seeking blockchain-driven proposals to enhance public service innovation.

Detroit residents will be able to pay their taxes in cryptocurrency, making the city the first major US metropolitan area to accept crypto for municipal services.

The announcement was made by the city on Monday, revealing a partnership with PayPal to facilitate these payments.

According to the city, all such transactions will be processed through a secure platform powered by PayPal, aligning with Detroit's broader strategy to explore emerging technologies for economic growth, civic engagement, and service improvement.

Detroit’s Tax Payments in Crypto: Key Highlights

The announcement from the city of Detroit states that cryptocurrency tax payments will be accepted starting "mid-2025." However, a specific date for when residents can begin paying their taxes in crypto is yet to be disclosed.

With this move, Detroit will become the largest US city accepting cryptocurrency for municipal payments, as highlighted by Nikhil Patel, the city treasurer.

Detroit's mayor, Mike Duggan, expressed enthusiasm for the initiative, stating, "Detroit is building a pro-technology environment that empowers residents and entrepreneurs."

“We are excited to be one of the first major US cities to explore blockchain’s civic applications and allow our residents to take advantage of cryptocurrency as a payment option."

Detroit's Call for Blockchain Innovation in Municipal Services

In addition to the new payment method, Detroit is also inviting blockchain entrepreneurs to showcase their innovative municipal solutions, as reported by Coingape.

These presentations will be received by Justin Onwenu, who was recently appointed as the Director of Entrepreneurship and Economic Opportunity in Detroit.

The initiative aims to position Detroit as a hub for blockchain-driven public service innovation and economic development.

Detroit's Director of Entrepreneurship and Economic Opportunity, Justin Onwenu, has set a deadline of December 15, 2024, for blockchain entrepreneurs to submit their proposals.

Interested parties can email [email protected] to submit their proposals.

Guidelines for Submitting Blockchain Proposals

Proposals should clearly outline the problem being addressed, the population impacted, the cost, potential risks involved, and how the solution will enhance city services for Detroiters.

Detroit's proposal marks a significant step towards integrating cryptocurrencies into state-level payments, with only a handful of major US cities currently accepting crypto for such services.

Currently, only three states—Utah, Colorado, and Louisiana—accept cryptocurrency for state tax payments.

Expanding Blockchain's Role in Tax Payments

Several initiatives are already underway to explore blockchain's potential for tax payments, even at the enterprise level.

For instance, OrbitLabs recently proposed a comprehensive review of Terra Classic's new "Reverse Charge" tax scheme.

This tax mechanism aims to streamline blockchain tax administration by shifting the burden of taxation from the sender to the recipient.

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