Detroit collaborates with PayPal to promote the 2025 cryptocurrency tax payment plan, actively inviting blockchain startups to collaborate.

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Detroit collaborates with PayPal to promote the 2025 cryptocurrency tax payment plan, actively inviting blockchain startups to collaborate.

The government of Detroit, United States recently announced that starting mid-2025, Detroit residents will be able to use cryptocurrency to "pay taxes" and other city-related fees, declaring itself as the most open city in the United States to accept cryptocurrency payments. The city also extended an invitation to blockchain startups for potential collaborations.

Collaborating with PayPal to Promote Cryptocurrency Payments for Citizen Convenience

The Detroit municipal government recently announced a partnership with PayPal to introduce a secure cryptocurrency payment system, allowing citizens to pay taxes, fines, and other municipal fees using cryptocurrencies. The government stated that implementing cryptocurrency payments not only optimizes municipal services but also provides a new payment option for citizens without bank accounts.

According to statistics from the Detroit municipal government as of 2024, the city has a total population of 630,000, with approximately one-fourth, nearly 150,000 citizens, lacking bank accounts. The introduction of cryptocurrency payment systems is expected to address this issue.

Inviting Blockchain Startups to Enhance Municipal Services

In addition to launching the cryptocurrency payment solution, the Detroit municipal government is also inviting blockchain startups and related companies to collaborate in improving municipal services using blockchain technology. They are seeking innovative proposals that enhance data security, streamline service processes, and increase transparency in municipal services. Interested startups are invited to submit proposals by December 15, 2024, detailing solutions, costs, risk assessments, and how they benefit citizens.

Stance and Measures of Some US Cities and States on Cryptocurrency Payments

Some cities and states in the US have already implemented cryptocurrency payments for various municipal fees, including tax payments, while others are still observing. Currently, the cities and states that accept cryptocurrency payments include:

  1. Williston, North Dakota: Accepts cryptocurrency for water and electricity payments and collaborates with BitPay for cryptocurrency transactions.

  2. Miami Lakes, Florida: Accepts cryptocurrency for business licenses, permits, and certifications, with PayPal as the payment platform.

  3. Colorado: In September 2022, Became the first state in the US to allow residents to pay state taxes with cryptocurrency, including personal income tax, corporate income tax, and sales tax, with the option to convert cryptocurrency to USD through third-party services.

  4. Utah: Allows residents to pay state taxes with cryptocurrency and uses third-party payment processing services.
  5. Louisiana: Starting September 2024, Accepts cryptocurrency for some state government services. The first cryptocurrency payment transaction was completed in the state's Department of Wildlife and Fisheries and converted to USD through a third-party service.

Cities still observing include Miami and New York City, with Miami Mayor Francis Suarez striving to make Miami a cryptocurrency-friendly city and launching "MiamiCoin." New York City Mayor Eric Adams strongly supports cryptocurrency, converting his first paycheck into Bitcoin and Ethereum. However, both cities are still observing the situation.