DETROIT (Michigan News Source) — By mid-2025, Detroit residents will be able to pay property taxes, water bills, and parking fines with cryptocurrency, making Detroit the largest U.S. city to take this step toward integrating digital assets into public services.
The city’s plan, announced on November 7 by Mayor Mike Duggan and Treasurer Nikhil Patel, aligns with a broader mission to modernize Detroit’s payment systems and cater to a younger, tech-savvy population.
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The decision to accept cryptocurrency came after a Detroit resident asked Duggan why the city was not keeping up with digital payment trends.
“Our biggest export in Michigan isn’t cars; it’s our young people,” Duggan said, as reported by Bridge Michigan. “This really bubbled up from young people saying, ‘Why doesn’t Detroit get with the latest technology?’”
Yet, as bold as this decision may seem, Detroit’s approach to cryptocurrency is designed to avoid the financial risks associated with volatile markets. Rather than holding or managing digital currencies directly, the city will partner with PayPal, which will instantly convert crypto payments to U.S. dollars.
“The market volatility risk will not be (borne), whatsoever, by the city. We will settle the payment in dollars,” Patel told the Detroit Free Press.
Detroit’s residents will be able to pay using Bitcoin, Ethereum, Litecoin, and PayPal’s dollar-backed stablecoin, ensuring flexibility without exposing the city to crypto fluctuations.
The payment option is expected to launch by July, initially for property taxes, with plans to extend it to other city fees. Patel said that the city is also exploring additional payment options, including more in-person payment locations and services like Venmo, to accommodate residents who may lack bank accounts.
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In addition to cryptocurrency payments, the city is opening the door to blockchain innovation, inviting proposals from entrepreneurs for potential uses of blockchain technology in Detroit’s municipal operations.
Blockchain is a decentralized ledger system that records transactions securely across a network of computers.
“I have people who stop me on the street and say ‘your real estate records would be a lot better if you use blockchain,’” Duggan said. “There’s a lot of problems in this country that can be solved with blockchain technology, and that’s separate from the currency.”
Proposals are due by December 15, with the city seeking ideas that outline technical solutions, stakeholder impacts, costs, and risks.
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