Detroit embraces crypto for municipal fees

Detroit residents will soon have the option to settle their taxes and other municipal fees using crypto, courtesy of a secure platform managed by PayPal.

This crypto payment option forms part of a broader strategy by city officials to harness cutting-edge technology to enhance public services, galvanise civic engagement, and promote economic growth.

Detroit Mayor Mike Duggan commented: “Detroit is building a technology-friendly 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 residents to use their cryptocurrency as a payment option.”

The capability to pay via crypto is expected to be operational by mid-2025, alongside further enhancements to the city’s payment services, according to Treasurer Nikhil Patel.

“The Treasurer’s Office is committed to modernising our payments channels and processes to enhance the customer experience and improve internal operational efficiency,” Patel elaborated.

“This new payment platform will increase accessibility for Detroiters who would like to use cryptocurrency; more importantly, the platform upgrade will also make it easier for Detroiters to make electronic payments—including those who may be unbanked.”

The City of Detroit is also extending an invitation to blockchain entrepreneurs and innovators to propose their ideas for civic applications that use blockchain technology. The city is especially interested in projects that utilise blockchain’s capabilities to bolster transparency, enhance data security, and streamline public services.

Entrepreneurs are encouraged to submit their proposals via email by 15 December 2024. Proposals should detail their proposed solutions, potential stakeholders, costs, risks, and demonstrate how their ideas will enhance city services and benefit residents.

Justin Onwenu, the City of Detroit’s first Director of Entrepreneurship and Economic Opportunity, commented: “This announcement represents our openness to new ideas and dedication to positioning Detroit as a place for entrepreneurs and bold ideas to thrive.

“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.”

This initiative is set to establish Detroit as the largest US city to permit crypto payments for city fees and taxes, joining a small but growing list of US states such as Colorado, Utah, and Louisiana that have embraced the technology for state transactions.

Other crypto-adopting US municipalities and states

Several municipalities and states in the US are testing the waters with crypto-based payments:

• Colorado: Pioneering the state-level acceptance of crypto tax payments in September 2022, Colorado allows residents to meet various tax obligations using digital currencies, processed through a third-party service translating them into US dollars.
• Utah: Following Colorado’s example, Utah established a programme enabling residents to pay taxes with crypto, again converting such payments into official currency.
• Louisiana: Became the latest to accept crypto for specific state services as of September 2024, with initial payments processed to the Department of Wildlife and Fisheries.

At the municipal level:

• Williston, North Dakota: Allows payment of utility bills using crypto, in partnership with BitPay.
• Miami Lakes, Florida: Accepts cryptocurrency payments for various town services, utilising PayPal’s crypto feature.

In contrast, while cities like Miami and New York have been vocal about their support and exploration of cryptocurrency, they do not currently accept it for municipal payments.

Miami – under Mayor Francis Suarez – introduced its own cryptocurrency, “MiamiCoin,” albeit without extending its use to city payments.

With a crypto-friendly administration heading to the White House, Detroit’s initiatives are likely to be part of a wave of crypto and digital asset adoption across the US.

(Image Credit: Doug Zuba)

See also: Visa and Coinbase join forces to enable instant transactions

Want to learn more about blockchain from industry leaders? Check out Blockchain Expo taking place in Amsterdam, California and London.

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