In a potentially historic move for digital asset policy in the United States, Michigan State Representative Matt Maddock has introduced legislation that would allow state employees to receive their wages in Bitcoin or other qualifying digital currencies — a first-of-its-kind effort to integrate cryptocurrency directly into public payroll systems.
The bill, unveiled on February 24 and aimed at the 2027 fiscal year, would amend Michigan’s Payment of Wages and Fringe Benefits Act (1978 PA 390) to give classified civil-service employees a choice of three payment methods: traditional U.S. currency (via in-person or direct deposit), electronic transfer to a financial institution, or digital currency of their choice, with Bitcoin mandated as one of the available options.
Details of the Proposal
Under the draft legislation, the state would be required to offer at least six digital currency payment options, though it does not specify which other tokens beyond Bitcoin would qualify. The proposal also includes a controversial provision that prohibits the state from offering any state-issued or state-controlled digital currency tied to a national government or central bank, effectively barring the use of central bank digital currencies (CBDCs) in payroll operations.
Supporters, led by Rep. Maddock — a Republican from Milford and vice chair of the House Appropriations Committee — argue the bill expands financial choice for public workers and positions Michigan as a leader in digital asset adoption and innovation. Proponents say it could help attract tech-savvy talent and reinforce the state’s growing role in the bitcoin economy.
Part of Broader Crypto Legislation
The Bitcoin wage bill is just one piece of a broader pro-crypto legislative push in Lansing this session. Companion proposals include:
HB 4511, which seeks to establish a digital asset bill of rights preventing local or state bans on Bitcoin ownership or use;
HB 4510, creating a framework for potential pension fund investment in large-cap digital assets; and
Bills aimed at incentivizing Bitcoin mining operations using repurposed energy infrastructure.
These accompanying measures reflect a statewide strategy to integrate digital-asset infrastructure, investment, and employment into Michigan’s economic and fiscal policy framework — spanning payroll choices, pension allocations, mining incentives, and personal digital-asset protections.
Implementation Questions & Next Steps
While the bill lays out payment options, it does not yet define the operational mechanics for how wage conversions, custody, volatility risk, tax reporting or compliance with federal labor standards would be handled — issues that state treasury and administrative agencies would likely address if the measure advances.
Maddock is reportedly seeking bipartisan co-sponsors before the bill is formally numbered and presented to legislative committees. If passed, Michigan would become one of the first U.S. states to formally authorize cryptocurrency compensation for public employees, setting a potential blueprint for others considering similar digital pay reforms.
