Michigan Introduces Bill to Allow State Employees to Be Paid in Bitcoin

Bitcoin Magazine

Michigan Introduces Bill to Allow State Employees to Be Paid in Bitcoin

Michigan State Rep. Matt Maddock has introduced legislation that would allow classified state civil service employees to receive their wages in Bitcoin or other qualifying digital assets, marking what supporters describe as a first-of-its-kind effort to integrate Bitcoin into state payroll systems.

The proposal would amend Michigan’s Payment of Wages and Fringe Benefits Act (1978 PA 390) by adding a new section permitting salaried state employees, beginning Jan. 1, 2027, to choose from three methods of compensation: U.S. currency paid in person at the Department of Treasury in Lansing, direct deposit or electronic transfer to a financial institution, or payment in a digital currency of the employee’s choice.

Under the bill that was shared with Bitcoin Magazine, the state would be required to offer at least six digital currency options, with Bitcoin mandated as one of them. 

The legislation also prohibits the state from offering any state-owned or state-controlled digital currency in which issuance or supply is managed by a national government or central bank — a provision that effectively bars the use of central bank digital currencies (CBDCs).

Maddock, a Republican from Milford and current vice chair of the House Appropriations Committee, said the measure is aimed at expanding financial choice for public workers and positioning Michigan as a leader in digital asset adoption. 

Pro-bitcoin legislation coming out of Michigan

The bill was developed in partnership with the Michigan Bitcoin Trade Council, a statewide advocacy organization focused on Bitcoin education and policy.

If enacted, Michigan would become one of the first states to formally authorize bitcoin as a wage payment option for government employees. 

While several private-sector employers across the U.S. have experimented with paying workers in digital assets, state-level payroll integration remains rare.

The wage proposal is part of a broader package of pro-Bitcoin legislation advancing in Lansing. Companion measures include HB 4511, which would establish a digital asset bill of rights prohibiting state and local governments from banning Bitcoin ownership or use; HB 4510, creating a framework for potential pension fund investment in large-cap digital assets; and HB 4512 and HB 4513, which seek to incentivize Bitcoin mining operations powered by abandoned oil and natural gas wells.

The wage bill requires the state to honor an employee’s chosen payment method and sets parameters for digital asset offerings but does not detail the operational mechanics of conversion, custody or volatility management. 

Those implementation questions would likely fall to the Department of Treasury and other administrative agencies if the measure becomes law.

Maddock said he is working to secure bipartisan co-sponsors ahead of the bill’s formal numbering and committee referral.

Last week, Missouri House Bill 2080, introduced by Representative Ben Keathley, was referred to the House Commerce Committee, proposing the creation of a state-managed Bitcoin Strategic Reserve Fund that would allow the treasurer to acquire, custody, and hold bitcoin in cold storage for at least five years under defined statutory guidelines.

In May 2025, New Hampshire empowered the state treasurer to allocate up to 10% of state funds into digital assets or precious metals with a market capitalization exceeding $500 billion.

Since then, other states — including Arizona and Texas — have followed suit, advancing or establishing comparable bitcoin reserve frameworks.

This post Michigan Introduces Bill to Allow State Employees to Be Paid in Bitcoin first appeared on Bitcoin Magazine and is written by Micah Zimmerman.