The City of Jackson will soon be making history as the first city in the nation to add cryptocurrency as a payroll conversion option for city employees.
As reported back in May by the Jackson Sun, Jackson City Mayor Scott Conger has been working to incorporate bitcoin into the city government, marking a first for any city government in the country.
City of Jackson Mayor Scott Conger shares of Jackson’s history and the influence it has had globally during Madison County’s 200th Birthday celebration on Saturday, Nov 13, 2021 at The Ned, in Jackson, Tenn.
“It’ll bring more opportunity,” Conger previously said. “It’s so refreshing to hear governments discussing different ways to finance things, besides ‘we’re going to raise your property taxes,’ or ‘we’re going to implement this fee.’ If we can find another way to do it, then that’s what we’re going to do.
“We offer our employees a deferred compensation opportunity for their retirement already. Why not add more options?”
Now, with plans in motion, a request for proposal (RFP) has been opened, which will allow third party platforms to apply to be the city’s cryptocurrency converter.
“The RFP is open!” Conger said excitedly. “The 22nd is when the respondents have to respond to the RFP. So once the 22nd hits, we’ll open the bids, have the committee, and then they’ll review it. They’ll probably make a recommendation to the council in February.”
The conversion option will diversify ways city employees can receive payment, according to Conger.
“It’s not something that’s going to be required,” he said. “It’s an alternative. Think of it like you’re investing in the stock market. What do you want to do? You’re want to diversify your investments. And this is just another way to diversify the portfolio of how we generate revenue—potentially throughout the city.”
The third-party platform is required for the city to be able to host bitcoin options.
Council members meet at December 2nd’s agenda review meeting and discuss upcoming cryptocurrency options for city employees.
“Because Tennessee state law doesn’t allow us as a city to hold our own balance sheet, we can’t pay in bitcoin, because that means we’d have to hold it to pay it,” Conger said. “So this is essentially us partnering with a third-party platform, which is like our deferred compensation now. So we’d pay our employees, and part of it would be a payroll deduction which would go to the third party, which they would then—from a pre-determined amount they’d worked out—open that wallet for them and purchase bitcoin or another cryptocurrency.”
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