Cryptocurrencies are the currencies created and managed without intermediaries, such as banks or other traditional financial entities. They are transactions carried out person to person (P2P) with the protection and support of Blockchain technology, which allows encryption and prevents any data modification.
Bitcoin remains the most popular and highest value cryptocurrency today. Over the years, transactions, such as payments and purchases in virtual currencies, have become more frequent, which, step by step, have led companies to have greater support in the use of this monetary system.
This trend may mean that shortly, this growing interest in the use of cryptocurrencies would lead to the making of salary payments with cryptocurrencies; however, some obstacles to its use still persist, such as the volatility of cryptocurrencies, which translates into the loss of value or the revaluation of the currency and therefore of the salary.
Volatility can slow the process
Satoshi Nakamoto is the creator of the Bitcoin currency and its reference software; it is speculated that it is an alias that a person or group uses to hide their true identity. It is a faceless pseudonym that left emails and left behind one of the most important creations/technological advances of recent years. Next, we will mention some of the hypotheses or theories that have been given about his identity.
Payment of wages in cryptocurrency is an option that grows every day
Every day the level of adoption of cryptocurrencies in the world grows, the news about the possibility of making transactions and payments legally with cryptocurrencies is becoming more frequent. Likewise, different fintech companies have offered practical tools to solve the volatility problem; for example, some platforms allow sending group payments (payroll) in cryptocurrencies and that have the option of sending the equivalent of the salary in dollars using a chosen cryptocurrency or make the conversion (to the change of the day) automatically.
The reasons for proceeding with the payment of remuneration in cryptocurrencies are the option of promoting its use, likewise, increasing the level of knowledge of the staff about it. Similarly, evaluating the implementation of this payment method has certain difficulties, such as regulating the use of cryptocurrencies in each country, which implies considering the legal, tax, or accounting aspects of each jurisdiction.
First of all, payment recipients must have a wallet with their respective passwords and other security mechanisms. On the other hand, employees must learn how to use cryptocurrency, make transactions, and change to fiat money. All this requires training, both for employees and for the company.
Advantages of this type of payments
Among the main advantages of paying salaries in cryptocurrencies is the ease that companies related to technology have or that generate income in cryptocurrencies and the ability to quickly, effectively, and safely pay independent workers or freelancers who are found in other countries or continents. Another advantage is its ease of use and lower fees.
In short, it seems that the remuneration of wages in cryptocurrencies is seen as a valid alternative in the future; its implementation will require a new regulation that answers all those questions that have already been formulated in recent years.
What do you think about this topic? Would you like to receive your salary in cryptocurrencies?
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