Detroit is leaning into crypto

Detroit wants to add crypto to the list of things it’s known for – right next to cars, The Temptations, and cat-focused sports teams. Last week, the city announced it will soon accept cryptocurrency as payment for taxes and other fees, making it the largest city in America to provide residents with the option.

• City officials said the payments will be made through a secure platform and managed by PayPal. From there, the crypto will be converted to cash before it hits government accounts, so as to not expose the city to the crypto market’s volatility.
• The payment option is expected to become available sometime in mid-2025.

In the same announcement, Detroit officials also called for entrepreneurs and innovators to pitch ideas for how the city government can incorporate blockchain technology into its operations, with a focus on enhancing transparency, improving data security, and streamlining public services.

Motown isn’t the only city pushin’ C. Williston, North Dakota, and Miami Lakes, Florida, also allow residents to use crypto to pay for city services like licenses and permits. And as of November 2024, three states accept cryptocurrency for state payment – Colorado, Louisiana, and Utah.

🪙 A crypto resurgence? Bitcoin is up ~30% since Election Day and currently trading at record highs. Analysts expect the incoming Trump administration to take a more hands-off and business-friendly approach to the crypto industry compared to current SEC chair Gary Gensler, under whom the agency filed lawsuits against FTX, Binance, Coinbase, Kraken, and Ripple.