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Kentucky town to pay police chief in bitcoin

Published time: December 04, 2013 21:34
Edited time: December 06, 2013 04:15
AFP Photo / George Frey

AFP Photo / George Frey

City employees in Vicco, Kentucky could be receiving their paychecks in the form of bitcoin as early as this month after officials there agreed on Monday to begin compensating the chief of police with the emerging crypto-currency.

City officials said on Monday this week that there won’t be a problem with paying Vicco Police Chief Tony Vaughn electronically using Bitcoin, an online-only digital form of currency that has in recent months been accepted at an increasing number of retailers around the world.

Bitcoin allows users to securely pay for goods and services with near total anonymity, all while avoiding the regulations and restrictions often imposed by state-controlled currencies, such as the dollar.

Cris Ritchie for Kentucky’s Hazard Herald reported on Wednesday that Vaughn made his request last month, and this week city officials said they finished their research and would be willing to pay the chief’s salary in bitcoin if that’s his preference.

"We done a checkup on it, and that's the way he wants paid, and that's the way the city is going to pay him," City Commissioner Claude Branson told the Herald.

“Basically his next paycheck” could be in bitcoin, Mayor Johnny Cummings said to the paper. “They've set up the accounts for Vicco and for Tony, so it can be transferred.”

"We just want to be on top of things, and up-and-coming and more progressive as a city," the mayor added.

All applicable federal and state taxes will still be chopped from the top of Vaughn’s salary each pay period, Cummings added, but the remainder will be electronically converted and put in the control of a city-run bitcoin account where funds will then be instantaneously transferred to Vicco’s own digital wallet.

"I'm excited about it; it's a first for Vicco again," Vaughn told Richie, referring to an ordinance passed by the city earlier this year that outlaws discrimination based on sexual orientation. Last month, the United States Senate approved of a similar bill that functions on a federal level — the Employment Non-Discrimination Act, or ENDA — but that act has yet to clear Congress.

But while the EDNA may eventually make its way to President Barack Obama’s desk and be signed into law, no measures whatsoever have been proposed in Congress just yet that would require the government to pay federal employees in bitcoin. Meanwhile, though, Federal Reserve Chairman Ben Bernanke wrote to the Senate recently that virtual currencies, like bitcoin, "may hold long-term promise, particularly if the innovations promote a faster, more secure, and more efficient payment system."

One bitcoin is currently worth US$1,230, up from $240 just one month earlier. Earlier this year a Canadian man attempted to sell his Alberta home for bitcoin, and the University of Nicosia in Cyprus recently became the first institution of its type to accept the virtual currency for tuition.

Comments (35)

 

Dave J. 14.04.2014 18:20

They should pay us in gold, or silver once again. That actually has value. Paper money and digital money are just to keep consumers buying products from ultimately the same people that own the banks... what an awesome scam.

 

Dave J. 14.04.2014 18:16

David Thompson 03.04.2014 13:00

You realize this is Russia Today? I would not want to be paid in Bitcoins... How will you invest your bitcoins? in all bitcoins? thats a terrible investment portfolio and you will pull your hair out. to have access to US investments you must use the dollar. Inflation is below 2% right now. Fiat currency requires inflation. If you invest your money in a smart way you should be able to exceed returns much greater than inflation.

  


You shouldn't be investing in stocks unless you like being a confused tool, or you have millions of shares, then you have control

 

David Thompson 03.04.2014 13:00

You realize this is Russia Today? I would not want to be paid in Bitcoins... How will you invest your bitcoins? in all bitcoins? thats a terrible investment portfolio and you will pull your hair out. to have access to US investments you must use the dollar. Inflation is below 2% right now. Fiat currency requires inflation. If you invest your money in a smart way you should be able to exceed returns much greater than inflation.

View all comments (35)
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