Residents in Detroit will soon be able to pay their taxes and other fees using cryptocurrency through a secure platform managed by PayPal.

The move will make Detroit the largest city in the US to accept cryptocurrency payments.

Currently, only Colorado, Utah and Louisiana accept cryptocurrency for state payments.

The scheme is part of a wider strategy by the city to explore alternative payment technologies, which the city says could improve public services, strengthen civic engagement, and improve economic growth.

The city said the service will make it easier for residents to make payments, adding that it demonstrates its support for blockchain technology entrepreneurs “who want to make a difference.”

Nikhil Patel, Treasurer of Detroit, said the service will be available from mid-2025 along with other improvements to city payment services.

“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.”

Additionally, the city of Detroit says it is accepting proposals from entrepreneurs for blockchain applications which could improve transparency and data security as well as improving public services.

The city added that its call out for proposals positions Detroit as a place for entrepreneurs and ideas “to thrive.”

The move comes as the price of bitcoin soars after Donald Trump was elected US president last week.

During his election campaign, Trump told voters that he was going to make the US the “crypto capital of the planet”.

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