Kentucky town from 'Colbert Report' to pay police chief in Bitcoin

A Kentucky town that gained national attention after being featured on Comedy Central's Colbert Report earlier this year has granted its police chief's request to be paid in the online currency Bitcoin.

The Hazard Herald reported that the city commission in Vicco approved Chief Tony Vaughn's request on Monday after an initial investigation of its feasibility.

"The reason they wanted to pass the ordinance is, this allows us greater latitude as far as finding out the legalities of it," Vaughn told the Herald.

But while continuing to research the implications of the move, Mayor Johnny Cummings told the Herald that Vaughn could begin to receive his salary in Bitcoin this month. However, federal and state taxes will be deducted from the payment before it is transferred from regular currency into the online format.

Vaughn was featured during an Aug. 14 Colbert Report segment focusing on Cummings' tenure as an openly gay mayor in the southern town of about 330 residents.

"I know he's gay, and he's my best friend," Vaughn said of Cummings. "We've been accused of being lovers. He's been through all four of my marriages. That boy knows more about me than most people in my life, and I love him like a brother, and I'll take care of him just like that, just like a brother."

The Associated Press reported a month later that the town's appearance led to an outpouring of support from other parts of the country, including a promise from donors in California to fund the purchase of playground equipment for a new city park -- a project that could cost as much as $90,000 -- and a pastor sending the town $40 to pay for beers for the residents seen on the show.

Watch Vaughn in the original Colbert Report feature on Cummings, aired in August 2013, below.