Joe Raedle / Staff via Getty Images
The report adds that the city can't guarantee vendors are giving it the best exchange rates, and concludes: "Procurement cannot recommend issuing a competitive solicitation to find the best value for paying employees in Bitcoin, and on terms favorable to the city. The market for cryptocurrency as payroll providers is not well established and appears to offer only net payroll deductions allowing access to Bitcoin."
"Second, once Bitcoin is received by an employee it is not insured by the government like U.S. bank deposits are. This means that Bitcoin stored online does not have the same protections as money in a bank account. Additionally, there may be no or minimal customer service options when using Bitcoin because it is inherently decentralized.
Third, there is no guarantee that someone receiving Bitcoin as a salary will make money because the price of Bitcoin fluctuates. It is conceivable that an employee's salary paid on Friday could lose a significant amount of value by Saturday."
Despite this acknowledgement of risk to its employees, the City of Miami is attempting to escape any possible liability from the get-go. On top of that, it wants everything for free. The city will "bear absolutely no liability, risk, or cost (administrative or otherwise) from the service implementation and operation," the document says, and will "not provide any funding or financial support" towards the implementation of the service. The City of Miami did not respond to Motherboard's request for comment.