On Thursday, Detroit announced plans to become the largest city in the United States to accept Bitcoin and other cryptocurrencies for tax payments. According to local media reportsresidents will be able to make payments through a platform operated by PayPal from mid-2025, as the city looks to modernize its payment systems.
Detroit’s cryptocurrency movement
Mayor Mike Duggan expressed his enthusiasm for the initiative and emphasized Detroit’s commitment to fostering a “technology-friendly environment” that supports residents and citizens. entrepreneurs. Duggan stated:
Detroit is building a technology-friendly environment that empowers residents and entrepreneurs. We’re excited to be one of the first major U.S. cities to explore the civic applications of blockchain and offer residents the ability to use their cryptocurrency as a payment option.
The Motor City Treasurer, Nikhil Patel, highlighted the initiative’s role in payment channels and improving customer experience, asserting 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 Detroiters, including those who may be unbanked, by providing more options for electronic payments.
Detroit’s decision places it among a select group of jurisdictions that are embracing cryptocurrency for government transactions. Only three US states – Colorado, Utah and Louisiana – currently accept cryptocurrency for state payments.
Will Bitcoin become an important pillar of 2025 economic policy?
In conjunction with the cryptocurrency payment announcement, Detroit is also inviting blockchain entrepreneurs to pitch ideas for social applications of the technology.
Justin Onwenu, the city’s first director of entrepreneurship and economic opportunity, is leading this initiative as the city looks for projects that the potential of blockchain to increase transparency, improve data security and streamline public services. Onwenu commented:
This announcement reflects our openness to new ideas and our commitment to positioning Detroit as a place where entrepreneurs and bold ideas can thrive. Blockchain technologies have the potential to bring greater accessibility, efficiency, transparency and security and we are excited to hear from entrepreneurs at the forefront of this work.
The announcement follows substantial investments in cryptocurrency by the Michigan State Pension System. Recently files revealed that more than $6.9 million had been invested in the ARK/21Shares Bitcoin ETF and another $10 million in Ethereum ETFs.
However, with Donald Trump’s victory in the presidential election on November 5, similar steps from other jurisdictions can be expected for the period 2025-2029. Made the now 47th President of the United States most important promises during his campaign, including making Bitcoin a strategic reserve for the country.
While Trump has vowed to make the US the “crypto capital of the world,” with Bitcoin at the heart of every speech he has given in recent months, he has also suggested that taxes on Bitcoin and other crypto transactions could be eliminated during his upcoming administration in the White House.
At the time of writing, Bitcoin was trading at $76,349, just below the all-time high of $76,880 during Thursday’s trading session.
Featured image of DALL-E, chart from TradingView.com