City employees could be paid in crypto next year, through a company that converts payroll to crypto.
The city of Jackson, Tennessee, will soon make history as the first city in the country to add cryptocurrency as a payroll conversion option for city employees, local media reported. Jackson Sun.
Already before, the Mayor of the City of Jackson, Scott Conger, has been working to incorporate Bitcoin to the city government. In fact, in July the mayor was planning to allow citizens to pay the tax in the main cryptocurrency. And before that, in April, he established a task force to explore the crypto ecosystem.
“We offer our employees a deferred compensation opportunity for their retirement. Why not add more options? ”, express.
You have now opened a Request for Proposal (RFP), which will allow third-party platforms to apply to become the city’s cryptocurrency converter.
“The RFP is open!”, said Conger. “The 22nd is when respondents must respond to the RFP. So once the 22nd rolls around, we’ll open the bids, contact the committee, and then they’ll review it. They will probably make a recommendation to the council in February. “
The conversion option will diversify the ways in which city employees can receive payments, according to Conger.
It is an option for employees, not an obligation
He indicated that receiving the salary in crypto was not an obligation for the employees. “It is an alternative. Think of it as if you are investing in the stock market. What do you want to do? You want to diversify your investments. And this is just another way to diversify the portfolio how we generate income, potentially across the city. “
However, the government cannot do it directly. A third-party platform is necessary for the city to host options for Bitcoin.
“Because Tennessee state law does not allow us as a city to have our own balance sheet, we cannot pay in bitcoins, because that means that we would have to retain it to pay it “Conger said. “So basically we partner with a third party platform, which is now like our deferred compensation. So we would pay our employees, and part of it would be a payroll deduction that would go to the third party, who would then, out of a predetermined amount that they had calculated, open that wallet for them and buy bitcoins. or another cryptocurrency. “
The option will also allow the city to pay contractors and businesses in Bitcoin
“If we have a company or contractor that wants to get paid in Bitcoin, then we can use that same third party, pay them in US dollars and they can convert it and pay it right away.” He said.
It is worth remembering that the options of paying employees in Bitcoin have not yet been adopted in any local government in the US In fact, very few are considering it other than Conger and the mayor of Miami, Francis Suárez, with whom Conger has “Struck up a conversation.” Miami, even though it proposed it at the beginning of the year, has yet to be carried out.
“It’s a great city, it makes sense”, Conger said about Miami. “They have a better path of least resistance than Jackson. But as I started to relax more (on cryptocurrency) and educate myself more about it, I thought ‘why not? Why not Jackson? Why can’t we do something that can compensate for the current economic system that we have? “
Version of Daily bitcoin
Picture of Unsplash