The city's Office of The Treasury has announced that people will have the option to pay taxes using crypto through a secure platform managed by PayPal. It says the move would make the Michigan city the largest US city to accept cryptocurrency as a form of payment for city fees and taxes.

Three US states' revenue departments – Colorado, Utah and Louisiana – already accept crypto for payments to public sector authorities.

Detroit's announcement came soon after the presidential election was won earlier this month by Donald Trump, who has positioned himself as a crypto enthusiast.

The crypto payment option is set to become available in Detroit in "mid 2025" along with "additional improvements to city payment services", treasurer Nikhil Patel said.

'Increasing accessibility'

Detroit says the planned enablement of crypto payments is part of a strategy "to explore innovative technologies that could enhance public services, strengthen civic engagement and foster economic growth".

"The initiative not only makes it easier for Detroit residents to transact with the city but also marks Detroit's commitment to welcoming blockchain and technology entrepreneurs who want to make a difference in the city," the announcement said.

"Detroit is building a technology-friendly environment that empowers residents and entrepreneurs," commented Detroit mayor Mike Duggan, a Democrat who has served for three terms since 2014. "We are excited to be one of the first major US cities to explore blockchain's civic applications and allow residents to use their cryptocurrency as a payment option."

"The Treasurer's Office is committed to modernising our payments channels and processes to enhance the customer experience and improve internal operational efficiency," Patel added. "This new payment platform will increase accessibility for Detroiters who would like to use cryptocurrency. More importantly, the platform upgrade will also make it easier for Detroiters to make electronic payments – including those who may be unbanked."