Starting in 2025, Detroit residents will be able to pay taxes and other city fees with cryptocurrency via the secure PayPal platform. Thus, the ghost town will become the largest US metropolis to accept cryptocurrency payments.
The new payment method is part of the city’s technology development strategy aimed at strengthening the economy, attracting blockchain startups, and improving public services. Users will be able to make transactions using such cryptocurrencies as Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH) , Litecoin (LTC), as well as their own PayPal USD (PYUSD) stablecoin.
According to Detroit Mayor Mike Duggan, the initiative is aimed at creating a «technology-friendly environment for residents and entrepreneurs» and is a step towards exploring the possibility of using blockchain technologies to benefit the city.
«We are pleased to be one of the first major US cities to allow residents to use cryptocurrency as a means of payment and to actively explore blockchain applications for city needs,» — mayor Duggan said.
Cryptocurrency payments will become available in mid-2025 along with a number of other updates to the city’s payment services, said Nikhil Patel, the city’s treasurer. According to him, the new platform will facilitate access to electronic payments for all residents, including those who do not have bank accounts.
In addition, the city invites blockchain startups and innovators to present their ideas on how to use blockchain for municipal needs.
As of November 2024, only three US states (Colorado, Utah, and Louisiana) accept cryptocurrency for public payments.
Detroit’s decline began in the mid-20th century, when auto giants Ford, General Motors, Chrysler, and others began to lose competitiveness due to high production costs, outdated technology, and foreign competition. This led to massive unemployment, increased crime, and a population decline — from 1.8 million in the 1950s to less than 700,000 in the early 2010s. In 2013, Detroit declared bankruptcy. It was the largest city bankruptcy in U.S. history.
Source: detroitmi.gov
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