Employees of the City will be able to convert cryptocurrencies to payroll. Jackson will be the first city in the US to offer cryptocurrency as a payroll conversion option for public employees. As reported by the Jackson Sun in May, Jackson Local Mayor Scott Conger has been working to incorporate Bitcoin into city administration, a first for any city government in the country.
“We currently provide our staff with a deferred payment option for their retirement. Why don’t you add additional options?” says the narrator.
Now that the preparations are in action, the city has released a request for proposal (RFP) allowing third-party platforms to apply to become the city’s bitcoin converter.
“The RFP is now available!” Conger exclaimed ecstatically. “The respondents have until the 22nd to respond to the RFP. So, once the 22nd arrives, we’ll open the bids, convene the committee, and have them assess everything. In February, they’ll most likely recommend it to the council.”
The conversion option, according to Conger, will increase the payment options accessible to city employees. He stated, “It’s not something that’s going to be required.” “It’s a different option.” Consider it as if you were investing in the stock market. What are your plans? You should diversify your investment portfolio. And this is just another opportunity to spread our revenue-generating portfolio—possibly across the city.”
A third-party platform is required for the city to host bitcoin options. “We can’t accept Bitcoin because Tennessee state law precludes us from keeping a balance sheet as a city,” Conger added. “We’d have to keep it in order to pay for it.”
“Essentially, this is us partnering with a third-party platform, which is now our deferred compensation.” So we’d pay our staff, and part of that would be a payroll deduction that would go to the third party, who would then open that wallet for them. The city will now be able to pay contractors and businesses in bitcoin, broadening the pool of bids.
“If we have a company or contractor who wants to be paid in bitcoin,” he explained, “we can utilize the same third-party, pay them in US dollars, and they can convert it and pay it immediately.”
In the United States, no municipal government has yet adopted Bitcoin-based employee alternatives. Only Conger and Miami Mayor Francis Suarez, with whom Conger has “initiated a conversation,” are actually thinking about it.