Ky. city approves measure to pay police chief in Bitcoin

Dec. 6, 2013 at 9:17 AM
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VICCO, Ky., Dec. 6 (UPI) -- The city commission in Vicco, Ky., approved a measure to pay its police chief in virtual currency, a decision officials say could be the first in the nation.

Last month, Police Chief Tony Vaughn asked commissioners that his salary be paid to him in Bitcoin, a virtual currency existing only on the Internet, and after conducting research, the commission approved the move earlier this week, the Hazard Herald reported.

Commissioner Claude Branson said there didn't seem to be any legal reason not to pay Vaughn in Bitcoin.

"We [did] a checkup on it, and that's the way he wants (to be) paid, and that's the way the city is going to pay him," Branson said.

Bitcoin gained more acceptance this year, with its value rising by the end of November to more than $1,000 per coin after being valued at less than $100 at the beginning of 2013, USA Today said.

Vaughn's take-home pay will be issued in Bitcoin, Mayor Johnny Cummings said. All federal and state taxes will be removed before Vaughn's salary is converted electronically to Bitcoin and deposited in an online city account, then transferred to Vaughn's Bitcoin account, the Herald reported Wednesday.

Cummings said several businesses across the country either accept or plan to accept Bitcoin. He said Vaughn could begin receiving his salary in Bitcoin as early as this month.

"Basically his next paycheck," Cummings said. "They've set up the accounts for Vicco and for Tony, so it can be transferred."

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