The payments would be handled by PayPal, which would accept the cryptocurrency, then convert it to regular U.S. dollars for the city. That approach would shield Detroit from the risk of wild fluctuations in the value of such digital currencies, city Treasurer Nikhil Patel said in a phone interview.

Detroit has announced plans to accept cryptocurrency tax payments through PayPal starting in mid-2025, becoming the largest US city to adopt digital currency for municipal payments while implementing automatic conversion to US dollars to manage volatility risks.

A lot of this appears to be a marketing ploy to position Detroit as an innovation hub, according to the city’s announcement, and comes just as President Trump has won a second term in office; he has said he would support a loosening of regulation on crypto.

Starting next year, Detroit residents will be able to pay their taxes and other city fees using cryptocurrency. Detroit is set to become the largest U.S. city to do this.

Detroit is set to make history as the largest U.S. city to accept cryptocurrency payments for taxes and municipal fees. This initiative was announced by city officials and will launch in mid-2025 through a secure platform managed by PayPal.