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Detroit
to
become
largest
city in
US to
accept
cryptocurrency
payments
for
taxes,
other
fees
•
Residents
will be
able to
pay with
cryptocurrency
beginning
mid 2025
• City
invites
blockchain
innovators
to
partner
on civic
solutions
Detroit,
MI –
Detroit
residents
will
soon
have the
option
to pay
taxes
and
other
city
fees
using
cryptocurrency
through
a secure
platform
managed
by
PayPal,
City
officials
announced
today.
In doing
so,
Detroit
would
become
the
largest
US city
to
accept
cryptocurrency
payments.
This
innovative
payment
option
is part
of a
larger
strategy
by the
City 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.
“Detroit
is
building
a
technology-friendly
environment
that
empowers
residents
and
entrepreneurs,
said
Detroit
Mayor
Mike
Duggan.
“We are
excited
to be
one of
the
first
major
U.S.
cities
to
explore
blockchains
civic
applications
and
allow
residents
to use
their
cryptocurrency
as a
payment
option.”
The
payment
option
will
become
available
in mid
2025
along
with
additional
improvements
to city
payment
services,
said
Treasurer
Nikhil
Patel.
“The
Treasurer’s
Office
is
committed
to
modernizing
our
payments
channels
and
processes
to
enhance
the
customer
experience
and
improve
internal
operational
efficiency,”
Patel
said.
“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.”
In
addition
to the
cryptocurrency
payment
option,
the City
of
Detroit
invites
blockchain
entrepreneurs
and
innovators
to pitch
their
ideas
for
block
chain
civic
applications
to
Justin
Onwenu,
the City
of
Detroit’s
first
Director
of
Entrepreneurship
and
Economic
Opportunity.
Through
this
open
call for
innovative
blockchain
applications,
the City
is
particularly
interested
in
projects
that
leverage
blockchain’s
potential
for
enhancing
transparency,
improving
data
security,
and
streamlining
public
services.
Blockchain
entrepreneurs
and
innovators
are
invited
to send
proposals
to
pitchdetroit@detroitmi.gov
by
December
15th,
2024.
Proposals
should
include
descriptions
of the
proposed
solutions,
potential
stakeholders,
costs,
risks
and
should
also
outline
how
their
ideas
will
improve
city
services
and
benefit
city
residents.
“This
announcement
represents
our
openness
to new
ideas
and
dedication
to
positioning
Detroit
as a
place
for
entrepreneurs
and bold
ideas to
thrive,
said
Justin
Onwenu,
City of
Detroit
Director
of
Entrepreneurship
and
Economic
Opportunity.
“Blockchain
technologies
have the
potential
to drive
greater
accessibility,
efficiency,
transparency,
and
security
and
we’re
excited
to hear
from
entrepreneurs
at the
forefront
of this
work.”
With
this
effort,
The City
of
Detroit
will
become
the
largest
US city
to
accept
cryptocurrency
as a
form of
payment
for city
fees and
taxes.
Furthermore,
as of
November
2024,
only
three US
states
(Colorado,
Utah,
Louisiana)
accept
cryptocurrency
for
state
payments.
What is
cryptocurrency?
Cryptocurrency
is a
digital
currency
that
uses
cryptography
and a
decentralized
network
to
enable
secure
transactions
without
a
central
authority
like a
bank or
government.
Instead,
cryptocurrencies
use a
public
ledger
called a
blockchain
to
record
and
verify
transactions
across a
network
of
computers.
Each
user has
a public
key for
sending
money
and a
private
key for
accessing
their
own
crypto.
Transactions
are
encrypted
using
the
public
key and
can only
be
decrypted
with the
private
key.
Cryptocurrencies
are
difficult
to
counterfeit
because
of their
use of
cryptography.
They
also can
offer
privacy
because
users
don't
need to
provide
personal
information
to make
purchases.
They can
also be
irreversible,
which
can
reduce
the risk
of fraud
for
merchants
and
potentially
make
commerce
cheaper
for
customers.
Additional
Information
• Miami:
Under
Mayor
Francis
Suarez,
Miami
has
positioned
itself
as a
crypto-friendly
hub. The
city
introduced
its own
cryptocurrency
"MiamiCoin"
in
collaboration
with
CityCoins.
However,
to this
date,
Miami
does not
accept
cryptocurrency
as a
form of
payment.
• New
York
City:
Mayor
Eric
Adams
has
expressed
strong
support
for
cryptocurrency,
even
converting
his
first
paycheck
into
Bitcoin
and
Ethereum,
however,
the New
York
City
does not
currently
accept
cryptocurrency
as a
form of
payment.
• Cities
currently
accepting
cryptocurrency-based
payments
o
Williston,
North
Dakota:
Williston
accepts
cryptocurrencies
for
utility
bill
payments.
The city
partnered
with
BitPay
to
facilitate
these
transactions.
o Miami
Lakes,
Florida:
Miami
Lakes
accepts
cryptocurrency
payments
for town
services,
including
permits
and
licenses.
The town
utilized
PayPal's
cryptocurrency
payment
feature
to
process
these
transactions.
•
Colorado:
In
September
2022,
Colorado
became
the
first
state to
allow
residents
to pay
state
taxes
using
cryptocurrency.
Taxpayers
can use
digital
currencies
to
settle
various
tax
obligations,
including
individual
income
tax,
business
income
tax, and
sales
and use
tax.
Payments
are
processed
through
a
third-party
service
that
converts
cryptocurrency
into
U.S.
dollars
for the
state.
• ABC
News-
Colorado
to
become
the
first
state to
accept
cryptocurrency
as
payment
for
taxes
• Utah:
Following
Colorado's
lead,
Utah
implemented
a
program
enabling
taxpayers
to pay
state
taxes
with
cryptocurrency.
Similar
to
Colorado,
Utah
utilizes
a
third-party
processor
to
handle
these
transactions,
ensuring
the
state
receives
payments
in U.S.
dollars.
o
Bloomberg
law-
Crypto
Tax
Payments
Get Few
Takers
as More
States
Eye
Programs
•
o
Louisiana:
In
September
2024,
Louisiana
began
accepting
cryptocurrency
payments
for
specific
state
services.
The
first
such
payment
was made
to the
Louisiana
Department
of
Wildlife
and
Fisheries.
Payments
are
processed
through
a
service
that
converts
cryptocurrency
into
U.S.
dollars
before
depositing
the
funds
into
state
accounts.
Forbes:
Louisiana
Accepts
First
Cryptocurrency
Payment
For
State
Services
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