Detroit to Accept Cryptocurrency for Tax Payments Starting Mid-2025, Becoming the First Major City to Embrace Crypto for Municipal Services

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

Detroit residents will be able to pay taxes in cryptocurrency starting mid-2025, making Detroit the first major city to accept crypto for municipal services. Partnering with PayPal, the city is also calling for blockchain-driven proposals to enhance public service innovation.

Detroit’s Push Towards Digital Innovation in Tax Payments

Residents of Detroit will be able to pay their taxes in cryptocurrency starting next year, the city has announced. With this move, Detroit will become the largest U.S. city to accept cryptocurrency for municipal services.

All financial transactions will be processed through a secure platform powered by PayPal, the city said. This aligns with Detroit’s broader initiative to explore cutting-edge technology to drive economic growth, increase civic engagement, and enhance public services.

Crypto Tax Payments Rollout Timeline

The announcement was made by the city of Detroit, which stated that it will begin accepting crypto for tax payments “mid-2025.” The city has yet to announce a specific date for when residents can start paying their taxes in cryptocurrency.

If implemented, Detroit would become the largest U.S. city to accept cryptocurrency for municipal payments, said Nikhil Patel, the city treasurer.

“Detroit is building a pro-technology environment that empowers residents and entrepreneurs,” Mayor Mike Duggan said. “We are excited to be one of the first major U.S. 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 addition to the new payment method, the city is inviting blockchain entrepreneurs to showcase their innovative municipal solutions for consideration, Coingape reported. These presentations will be given to Justin Onwenu, Detroit’s recently appointed Director of Entrepreneurship and Economic Opportunity.

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

Blockchain entrepreneurs have until December 15, 2024, to submit their concepts, according to a call to action issued by City of Detroit Director of Entrepreneurship and Economic Opportunity Justin Onwenu. Interested parties can email their proposals to [email protected]

Guidelines for Blockchain Proposals

The proposal should outline the problem being solved, who it will impact, how much it will cost, any risks involved, and how it will improve city services for the people of Detroit.

Detroit’s initiative to accept crypto for municipal payments is among the first of its kind for major U.S. cities. Currently, only three states—Utah, Colorado, and Louisiana—accept crypto for state payments.

Expanding Blockchain’s Role in Tax Payments

Several organizations are already exploring blockchain for tax payments.

OrbitLabs proposed a comprehensive assessment of Terra Classic’s new “Reverse Charge” tax scheme. This tax mechanism aims to facilitate blockchain tax administration by shifting the tax burden from the sender to the recipient.

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