Michigan State Representative Matt Maddock has introduced groundbreaking legislation that would permit classified state civil service employees to receive their wages in Bitcoin or other approved digital assets. The proposal, which would take effect on January 1, 2027, represents what advocates describe as a pioneering effort to integrate Bitcoin into state payroll systems. According to Bitcoin Magazine, the bill would amend Michigan’s Payment of Wages and Fringe Benefits Act to expand compensation options for public sector workers.
Under the proposed legislation, salaried state employees would be able to choose from three payment methods: traditional U.S. currency collected in person at the Department of Treasury in Lansing, direct deposit to a financial institution, or payment in a digital currency of their choice. The state would be required to offer at least six digital currency options, with Bitcoin mandated as one of them.
Bitcoin Wage Payments and CBDC Prohibition
The bill includes a notable provision that prohibits the state from offering any state-owned or state-controlled digital currency managed by a national government or central bank. This clause effectively bars the use of central bank digital currencies, addressing concerns among cryptocurrency advocates about government-issued digital money.
Maddock, a Republican from Milford who currently serves as vice chair of the House Appropriations Committee, said the measure aims to expand financial choice for public workers while positioning Michigan as a leader in digital asset adoption. The legislation 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 United States have experimented with paying workers in digital assets, state-level payroll integration remains rare. However, the bill does not detail the operational mechanics of conversion, custody, or volatility management.
Broader Legislative Package Advancing in Michigan
The wage proposal is part of a comprehensive 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. Additionally, HB 4510 would create a framework for potential pension fund investment in large-cap digital assets.
Meanwhile, HB 4512 and HB 4513 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, though implementation questions would likely fall to the Department of Treasury and other administrative agencies if the measure becomes law.
National Trend Toward Bitcoin Adoption
Michigan’s proposal follows similar initiatives in other states. Last week, Missouri House Bill 2080, introduced by Representative Ben Keathley, was referred to the House Commerce Committee, according to reports. The Missouri bill proposes creating a state-managed Bitcoin Strategic Reserve Fund that would allow the treasurer to acquire 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 percent of state funds into digital assets or precious metals with a market capitalization exceeding 500 billion dollars. Since then, other states including Arizona and Texas have advanced or established comparable Bitcoin reserve frameworks, indicating growing institutional interest in cryptocurrency adoption at the state level.
Representative Maddock said he is working to secure bipartisan co-sponsors ahead of the bill’s formal numbering and committee referral. The timeline for committee review and potential floor votes remains uncertain, and authorities have not confirmed when the legislation might advance through the legislative process.