Detroit is set to become the largest US city to accept cryptocurrency for municipal tax payments, with the initiative launching in mid-2025.
The city's decision, announced by officials on Thursday, will allow residents to settle their taxes using digital currencies, marking a significant step in Detroit's efforts to embrace innovative technologies.
The payments will be processed through a secure platform maintained by PayPal, aligning with Detroit's broader strategy to explore and integrate emerging technologies. City leaders believe this initiative will not only enhance public services but also foster economic growth, encourage civic engagement, and position the city as a leader in blockchain-based solutions.
Detroit's Mayor, Mike Duggan, highlighted the city's commitment to creating a technology-friendly environment that empowers its residents and entrepreneurs. The mayor expressed excitement about being among the first major US cities to explore blockchain applications for civic use, providing residents with a new, modern payment option.
In addition to the tax payment initiative, the city is also seeking proposals from blockchain entrepreneurs to help drive innovation in public service. Interested parties are encouraged to submit their ideas to Justin Onwenu, Detroit's Director of Entrepreneurship and Economic Opportunity, by December 15, 2024. The proposals should outline solutions that could improve city services, benefit residents, and leverage blockchain technology to create new economic opportunities.
Currently, only a few states—Colorado, Utah, and Louisiana—allow cryptocurrency payments for state-level taxes, making Detroit's move a pioneering one among major US cities. The city’s efforts come as blockchain companies, such as OrbitLabs, continue to test innovative tax systems, such as the "Reverse Charge" tax mechanism on Terra Classic, which simplifies tax collection by deducting taxes from the recipient instead of the sender.
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