Detroit is becoming the biggest US city whose resident will be able to settle their tax payments in cryptocurrency, city officials announced Thursday. The move will make Detroit the largest US city to accept crypto payments for public services.
City officials said transactions are set to occur via a secure platform maintained by PayPal. The service is set to start by mid-2025.
Detroit Becomes First Major US City to Accept Crypto for Tax Payments
Detroit recently announced that starting next year, residents will be able to settle their tax payments by using crypto. This makes Detroit the largest US city offering crypto payment options for municipal services.
The city said the transactions would go through a secure platform powered by PayPal. This “aligns with Detroit’s larger strategy to explore innovative technologies. It could also enhance public services, strengthen civic engagement, and foster economic growth.
The city of Detroit has announced that beginning “mid-202.| However the city didn’t set an exact date when citizens can start with their tax payments with cryptocurrency. According to city treasurer Nikhil Patel, this would make Detroit the largest US city offering crypto for municipal payments.
Detroit is building a technology-friendly environment that empowers residents and entrepreneurs,” said Mayor Mike Duggan. “We are excited to be one of the first major US cities to explore blockchain’s civic applications and allow our residents to take advantage of cryptocurrency as a payment option.”
Detroit Seeks Blockchain Brains
Coupled with the new payment system, the city calls on blockchain entrepreneurs to come and present their unique civic solutions. These presentations will go to Detroit’s newly minted Entrepreneurship and Economic Opportunity Director, Justin Onwenu. The work aims to position Detroit as a hub for blockchain-driven economic development and innovation in public service.
Detroit is calling on blockchain entrepreneurs to submit their proposals to Justin Onwenu, the city’s Director of Entrepreneurship and Economic Opportunity, by December 15, 2024. Those interested can email their proposals to pitchdetroit@detroitmi.gov.
Proposals should include a description of the proposed solution, identification of potential stakeholders, cost estimates and risk assessments, and an outline of how the solution will enhance city services and benefit Detroit residents.
Currently, only Colorado, Utah, and Louisiana accept cryptocurrency for state payments, making Detroit’s initiative one of the first among major US cities.
Some companies are already testing tax payments on blockchain. Most recently, OrbitLabs has proposed a thorough review of the new “Reverse Charge” tax system on Terra Classic. This tax mechanism aims to simplify tax handling on the blockchain by deducting taxes from the recipient rather than the sender.
The post Detroit To Accept Tax Payments In Crypto, Here’s When appeared first on CoinGape.
