Detroit Eyes PayPal Service to Become Largest US City for Crypto Payments
Key takeaways
- Detroit will launch a PayPal-managed crypto service by mid-2025, enabling its residents to make payments using Bitcoin ($BTC) and Ethereum ($ETH).
- Diving deeper into Web3, Detroit is calling for blockchain innovators to pitch ideas for decentralized developments that'll improve the city.
- Only three other US states accept crypto payments, making its ambition of becoming the largest US city for crypto payments plausible.
By mid-2025, Detroiters will be able to spend crypto freely through a PayPal-managed platform.
Another boon of the upcoming service is that they'll be able to pay their taxes using popular coins like $BTC and $ETH.
Ultimately, the city strives to become the largest US city for crypto payments and welcome more innovative Web3 developments.
Crypto Payments to Aid Unbanked DetroitersThe Detroit crypto payments initiative is a critical component for the city to enhance its financial services - especially for those with limited access to traditional banks.
It's an extremely strategic move, considering that 23% of low-income Americans are living without a bank account, and Detroit is one of the poorest major US cities.
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.
By exploring blockchain-based technology, it positions itself in a financial landscape where cryptocurrency is becoming increasingly accepted.
Per Chainalysis, the US ranks fourth in global crypto adoption, trailing behind India, Nigeria, and Indonesia.
Source: ChainalysisDetroit Scours Other Blockchain InnovationsDetroit is doubling down on Web3, inviting blockchain entrepreneurs to pitch their ideas for city-changing decentralized developments.
This open call seeks innovative projects that enhance data security and transparency, as well as streamlines public services.
Proposals (to be sent to pitchdetroit@detroitmi.gov by Dec. 15) should outline potential costs, stakeholders, risks, and their role in empowering the city's operations and residents.
Is Its Plan for Web3 Dominance Plausible?Detroit's plan to become the largest US city for crypto payments isn't too far-fetched. Just three US states - Ohio, Louisiana, and Colorado - accept crypto for tax payments.
However, more cities are becoming attuned to the value of blockchain technology, possibly impeding Detroit's progress.
Miami notably positioned itself as a crypto-friendly hub early on; it rolled out MiamiCoin' for city donations in 2022.
Others that have also progressed in the crypto arena include Williston (North Dakota), accepting crypto for utility bill payments, and Miami Lakes (Florida), using PayPal's crypto service for town contributions.
Additionally possibly hindering Detroit's lead is the self-proclaimed crypto president,' Donald Trump, winning the presidential race.
Given the high chance of looser US crypto regulations incoming, traditionally anti-crypto cities might switch their perspectives, making it tricky for Detroit to claim the top spot.
ReferencesClick to expand and view sources- 23% of low-income Americans are living without a bank account (CNBC)
- Detroit, Michigan Population 2024 (World Population Review)
- Chainalysis Report: The 2024 Global Adoption Index (Chainalysis)
- Detroit to become largest city in US to accept cryptocurrency payments for taxes, other fees (Detroit.gov)
- 2024 Cryptocurrency Adoption and Sentiment Report (Security.org)
- What is Miami Coin? (CoinMarketCap)
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