By accepting cryptocurrencies for taxes and other local municipal payments, Detroit will become the leading city in the cryptocurrency space The largest city In the United States to accept cryptocurrencies for payments.
The program is scheduled to begin in mid-2025, according to local officials in Detroit. The initiative is expected to run on a secure platform managed by PayPal.
Detroit wants to embrace cryptocurrencies With aspirations to pioneer blockchain applications in municipal contexts. Detroit Mayor Mike Duggan claims the program is future-oriented, saying:
“Detroit is building a technology-friendly environment that empowers its residents and entrepreneurs alike.”
Inclusion through modern payment options
New system It is planned in a way that will benefit users as well as traditionally disadvantaged groups. According to City Treasurer Nikhil Patel, the new method will provide more digital payment options to residents, thus enhancing easy access to finance of all kinds, especially for the unbanked.
Patel said:
“The Treasurer’s Office is committed to modernizing our payment channels to enhance the customer experience and improve internal efficiency.”
In this regard, this system aims to make it easier and more convenient for all Detroit residents to pay property taxes, municipal and permit fees.
Calling Blockchain Innovators
Detroit is inviting blockchain entrepreneurs to participate, led by Justin Onwenu, the city’s first director of entrepreneurship and economic opportunity. This new initiative calls for proposals on civil society Blockchain solutionswith an application deadline of December 15, 2024.
The proposal proposed by the entrepreneur should be comprehensive and consist of every aspect related to risk probabilities, cost assessments and stakeholders involved. The goal of the project: to identify the brightest and most innovative minds and ensure that Detroit serves as a precursor to civic progress powered by blockchain technology.
Skyscrapers in the city of Detroit. Image: Fodors Travel Guide
Nationwide acceptance of the crypto trend
Accepting cryptocurrencies as payment in Detroit is part of a larger trend in the United States. At present, Colorado tops the list as one of the states that has been allowing payments since last September 2022.
Next on the list are Utah, Louisiana, and Colorado, all of which now allow the cryptocurrency to be accepted for state payments. Smaller cities like Williston, North Dakota, and Miami Lakes, Florida, have also begun using BitPay and PayPal’s cryptocurrency feature for their municipal payments.
Leading the way to major cities
Only a few major cities have yet set up cryptocurrency payment systems, despite the fact that many of them have expressed interest in cryptocurrencies. Miami launched MiamiCoin but does not accept cryptocurrencies as legal tender, and New York City, despite supporting it, has not integrated cryptocurrency payments.
Detroit’s program could be a strong incentive for other cities to adopt, as it offers secure PayPal transactions that convert to US dollars, expanding payment options while ensuring stability.
Featured image from Pexels, chart from TradingView