Michigan State Rep. Matt Maddock has put forward new legislation aimed at allowing classified state civil service employees to opt for their wages in Bitcoin or other designated digital currencies. This innovative proposal, which is being touted as a pioneering effort to bring Bitcoin into state payroll systems, seeks to amend Michigan’s Payment of Wages and Fringe Benefits Act.
If passed, the legislation would grant salaried state employees three compensation options beginning January 1, 2027: payment in U.S. currency at the Department of Treasury in Lansing, direct deposit or electronic transfer to a financial institution, or payment in a digital currency of their selection. Notably, the state would be mandated to offer at least six digital currency options, with Bitcoin being a required choice.
Furthermore, Maddock’s bill notably stipulates that the state cannot provide any state-owned or state-controlled digital currency managed by a national government or central bank. This provision effectively prohibits the use of central bank digital currencies (CBDCs), reflecting a clear stance against government-controlled digital assets.
Maddock, a Republican representative from Milford and currently serving as vice chair of the House Appropriations Committee, articulated that the measure is designed to enhance financial options for public workers and position Michigan as a frontrunner in the realm of digital asset adoption.
The bill has garnered support from the Michigan Bitcoin Trade Council, an advocacy organization committed to Bitcoin education and policy. Should this legislation be enacted, Michigan would become one of the first states to officially recognize Bitcoin as a viable wage payment option for government employees, marking a significant step for cryptocurrency integration at the state level.
While various private-sector employers in the U.S. have started to pay employees in digital currencies, state-level payroll implementations remain uncommon. This wage proposal is part of a broader suite of pro-Bitcoin legislation currently progressing in Lansing. These companion bills include measures to establish a digital asset bill of rights that would prevent state and local authorities from banning Bitcoin usage, alongside frameworks for potential pension fund investment in substantial digital assets, and initiatives to promote Bitcoin mining operations using abandoned oil and natural gas wells.
The wage bill mandates that the state must respect the chosen payment method of employees and outlines parameters for the selection of digital assets. However, it leaves important operational details regarding currency conversion, custody, and management of volatility unaddressed. Should the bill become law, these implementation issues will likely fall under the purview of the Department of Treasury and other relevant administrative bodies.
As part of his efforts to advance the legislation, Maddock is working to secure bipartisan sponsorships before its formal introduction and committee review. Recently, similar initiatives have emerged in other states, notably Missouri, where House Bill 2080 was introduced to create a state-managed Bitcoin Strategic Reserve Fund, allowing the state treasurer to acquire and hold Bitcoin under specific regulations. Moreover, New Hampshire has empowered its state treasurer to allocate a portion of state funds into digital assets or precious metals, a model that has inspired similar legislative efforts in states like Arizona and Texas.
