Michigan Proposes Legislation to Enable State Workers to Receive Salaries in Bitcoin
State Representative Matt Maddock of Michigan has put forward a bill that would permit classified civil service employees within the state to be compensated using Bitcoin or other approved digital currencies. Advocates hail this initiative as a pioneering move toward incorporating cryptocurrency into government payroll systems.
The proposed amendment targets Michigan’s Payment of Wages and Fringe Benefits Act (1978 PA 390), introducing a provision that, starting January 1, 2027, allows state employees paid by salary to select from three payment options: cash disbursed directly at the Department of Treasury in Lansing, electronic transfer or direct deposit into a bank account, or remuneration via a digital currency chosen by the employee.
According to details shared with Bitcoin Magazine, the legislation mandates offering at least six different cryptocurrencies for wage payments, with Bitcoin being compulsory among them.
The bill explicitly forbids the use of any digital currency issued or controlled by national governments or central banks—effectively excluding central bank digital currencies (CBDCs) from being used for payroll purposes.
Maddock, representing Milford and serving as vice chair on the House Appropriations Committee, emphasized that this law aims to broaden financial options for public sector workers while positioning Michigan at the forefront of adopting blockchain-based assets.
JUST IN:
Michigan State Rep. Matt Maddock introduces bill allowing payment in bitcoin and bans issuance of CBDC
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— Bitcoin Magazine (@BitcoinMagazine) February 24, 2026
A Wave of Pro-Bitcoin Policies Emerging from Michigan
This legislative effort was crafted alongside the Michigan Bitcoin Trade Council—a statewide group dedicated to promoting education and policy reform related to Bitcoin.
If passed into law, Michigan would join an exclusive group of states officially permitting government employees’ wages to be paid in bitcoin—a rarity given most cryptocurrency payroll experiments have been limited primarily to private companies across America.
This wage payment proposal is part of an extensive suite of bills supporting bitcoin adoption currently progressing through Lansing’s legislature. Complementary bills include HB 4511 which proposes establishing a “digital asset bill of rights” preventing governmental restrictions on owning or using bitcoin;
HB 4510 aims at creating guidelines enabling pension funds potentially invest in large-cap cryptocurrencies;
and HBs 4512 &p#8217;s focus on incentivizing environmentally conscious bitcoin mining operations utilizing abandoned oil and gas wells as energy sources.
The wage legislation obliges state authorities respect employees’ preferred compensation method while outlining criteria for acceptable cryptocurrencies but leaves operational specifics such as conversion processes, custody solutions,€;and volatility safeguards undefined — these responsibilities are expected fall under Treasury Department jurisdiction if enacted.&
Maddock is actively seeking bipartisan support before formally assigning bill numbers and submitting it for committee review.
Last week Missouri introduced House Bill #2080 authored by Representative Ben Keathley proposing creation</strong>a state-managed “Bitcoin Strategic Reserve Fund” empowering treasurer acquire custody hold bitcoins offline minimum five years following strict statutory rules.