Detroit, biggest U.S city, to accept Bitcoin for tax payments

Detroit, Michigan, is the largest US city accepting Bitcoin and other cryptocurrencies for tax payments. The city said citizens can pay their taxes and civic fees with cryptocurrency next year.

Additionally, Michigan will become the first state to accept cryptocurrency for tax payments, joining Louisiana, Colorado, and Utah, all thanks to Detroit. Colorado was the first state to permit its citizens to use Bitcoin to pay state taxes in September 2022. It’s unknown if other Michigan cities will do the same.

Detroit Mayor Mike Duggan said, “Detroit is creating a tech-friendly environment that empowers citizens and entrepreneurs.” “We are thrilled to be among the first significant American cities to investigate blockchain-based civic applications and enable citizens to pay with their cryptocurrency.”

The Citizen Treasurer Nikhil Patel says the payment option will be available around the middle of 2025. We don’t know the precise date. “To improve internal operational efficiency and the customer experience, the Treasurer’s Office is dedicated to modernizing our payment channels and processes,” Patel states. ‘Thanks to this new payment platform, Detroit residents who want to use cryptocurrencies will have more accessibility significantly, the platform update will facilitate electronic payments for Detroiters.’

Blockchain innovators and entrepreneurs will also be invited to Detroit to present concepts for blockchain-based civic applications. “Projects that leverage blockchain’s potential for enhancing transparency, improving data security, and streamlining public services” is what municipal authorities say they seeking proposals by December 15. According to the city, they should include “proposed solutions, potential stakeholders, costs, risks, and should also outline how their ideas will improve city services and benefit city residents.”