On Thursday, Detroit announced plans to become the largest US city to accept bitcoin and other cryptocurrencies for tax payments. According local media reportsResidents will be able to make payments through a platform managed by PayPal starting in mid-2025 as the city looks to modernize its payment systems.
The Detroit crypto Movement
Mayor Mike Duggan expressed enthusiasm for the initiative and emphasized Detroit's commitment to fostering a “technology-friendly environment” that supports residents and businessmen. Duggan stated:
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 civic applications of blockchain and allow residents to use their cryptocurrency as a payment option.
Motor City Treasurer Nikhil Patel highlighted the initiative's role in payment channels and improving customer experience, stating that the Treasurer's Office is committed to modernizing processes to improve customer experience and internal operational efficiencies.
The introduction of cryptocurrency payments aims to increase accessibility for Detroit residents, including those who are unbanked, by providing more options for electronic payments.
Detroit's decision places it among a select group of jurisdictions adopting cryptocurrencies for government transactions. Currently, only three US states (Colorado, Utah, and Louisiana) accept cryptocurrencies for state payments.
Is bitcoin ready to become a key pillar of 2025 economic policy?
Along with the cryptocurrency payment announcement, Detroit is also inviting blockchain entrepreneurs to submit ideas for civic applications of the technology.
Justin Onwenu, the city's first director of entrepreneurship and economic opportunities, is spearheading this initiative as the city looks for projects that leverage The potential of the blockchain. to improve transparency, improve data security and optimize public services. Onwenu 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 are excited to hear from entrepreneurs who are at the forefront of this work.
The announcement comes on the heels of significant cryptocurrency investments by the state of Michigan's retirement system. Recent filings revealed more than $6.9 million invested in the ARK/21Shares bitcoin ETF and an additional $10 million in ethereum ETFs.
However, with Donald Trump's victory in the presidential election on November 5, similar measures can be expected in other jurisdictions for the period 2025-2029. The now 47th President of the United States made key promises during his campaign, including making bitcoin a strategic reserve asset for the country.
While Trump has promised to make the United States the “cryptocurrency capital of the world,” with bitcoin at the center of every speech he has given in recent months, he has also promised suggested that taxes on bitcoin and other crypto transactions could be eliminated during his next White House administration.
At the time of writing, bitcoin was trading at $76,349, just below its all-time high of $76,880 set during Thursday's trading session.
Featured image of DALL-E, chart from TradingView.com
