Tennessee bans city governments from paying employees in cryptocurrency

The Tennessee state Senate effectively halted a proposal in one city that would have allowed city employees to be paid in cryptocurrency by passing an amendment of their own.

Jackson Mayor Scott Conger’s plan to become the first local government in the nation to offer its employees an option to be paid in cryptocurrency has been made more difficult by a new state amendment to an existing bill that requires local governments to consult with the state before entering into third party payroll contracts of any kind.

Conger responded to the decision in a Tweet on April 1, saying, “Prior to this amendment, Tennessee local governments could use a 3rd party for compensation conversion. Some are confined by the niche in the world that they carve out for themselves & limit themselves to fewer possibilities.”

Conger further commented “(The bill) is a bit of a hurdle for us,” Conger said. “Talk about small government and not wanting government overreach. And now we have government overreach via the state government telling local governments what contracts they’re allowed to enter into.”

Conger is determined to give Jackson City employees options to diversify their incomes. “I will not stop. We will lead the way for bitcoin,” he said.