Payment of salaries in cryptocurrencies: a growing option.
With the increase in the level of adoption of cryptocurrencies worldwide, news about the possibilities of carrying out transactions and daily payments using cryptoactives are becoming more frequent. This also increases the number of companies that have shown their support for the new monetary system and are studying the possibility of operating with this type of assets and venturing, among other initiatives, in the payment of salaries with cryptocurrencies.
Based on these advances, some companies have already incorporated cryptocurrencies into their workers’ compensation system. Such is the case of the Spanish company Repara tu Deuda, adviser in the cancellation of debts, which in January 2018 announced to its employees that they would have the opportunity to receive part of the payment of their salaries in cryptocurrencies, specifically in bitcoins.
Also the companies GMO Internet, Inc., of Japan; and Canadian Structurd Printing cancel part of their employees’ salary in bitcoins. The Japanese company made the announcement in December 2017, starting to pay part of the salary of its 4,700 employees at BTC since February 2018. Meanwhile, Structur3d Printing, dedicated to the production of complements for desktop 3D printers, has been doing so since 2014.
Evaluating the difficulties
Among the reasons why the organizations mentioned chose the option of paying salaries with cryptocurrencies, mention is made of the search to encourage their use, in addition to increasing the level of knowledge of personnel about these assets. From these cases, there are many other companies evaluating this possibility.
However, when evaluating the implementation of this payment method certain difficulties are considered. Among them, those related to the regulation of cryptocurrencies in each country. A fact that implies taking into account the legal, accounting and tax aspects of each jurisdiction.
The volatility of cryptocurrencies is also mentioned as an obstacle. A characteristic that can be cause of loss of value or revaluation of the salary, depending on the increase or decrease of the price of the cryptoactives in the market. All these variables have made most companies that use this system pay only part of the salary in bitcoins. They also offer it as an election to their employees.
According to the experience of companies that pay salaries with cryptocurrencies, there are several aspects to take into account when choosing this option, beyond the debate on legal issues. Its execution requires the start-up of a logistics.
First, the recipients of money must have a portfolio with their respective keys and security mechanisms. At the same time, employees have to learn to use cryptocurrencies, know how to make transactions and how to make changes to fiat money.
This situation requires training for both employers and employees. Taking into account this circumstance, the Spanish company Repara tu Deuda offered its employees courses to explain to their staff what bitcoin is and how it is used, in addition to teaching them how to exchange it for other cryptocurrencies or fiduciary money. At the same time, it installed cryptocurrency ATMs in its central offices and developed a portfolio so that its employees could carry out transactions.
Even for the owners of companies that feel overwhelmed by what this work implies, there are solutions by hiring payroll processing companies. These companies help employers carry out the process. This way they avoid the work of making the purchase of the cryptoactives equivalent to the salaries, and the execution of the internal logistics for the payment.
These are companies like Wagepoint, launched in 2014; Rise People, emerged in 2014; o BitWage, created in 2017. In this last platform, the employees of the company that plans to pay with cryptocurrencies configure their accounts.
The payroll processor is responsible for informing staff about the details necessary to receive their salary. It then provides the data to the employer to transfer the amounts earned by each employee. Subsequently, it makes the change according to the value of the cryptocurrency and cancels it to the address established by the employee.
The advantages of this type of payment
In general terms, the payment of salaries with cryptocurrencies is seen as an advantage, especially for organizations linked to the technological area. Likewise, some companies from different sectors often use cryptoactives to pay both international staff and independent workers (freelancers).
Among the advantages of paying salaries in bitcoin or other cryptoactive is its ease of use, its nature that exceeds borders and its lower rates, according to an article by Rise People. To this he adds that the method allows companies to attract more technologically qualified people.
In this sense, the ease offered by cryptocurrencies for international payments is highlighted. Something that does not happen with most of the sites that offer these services for freelancers and extra-frontier employees, whose payments are usually generated through Paypal, Payoneer or Payza. These have higher commissions and their requirements often make the receipt of the payment uphill.
It also indicates that cryptocurrencies represent an alternative to empower employees in their finances, by serving as an investment and as a store of value. On the other hand, existing strategies to counteract volatility are cited. For this it is worth applying one of the most frequent tips in the area of investments: diversification.
In this way, it is recommended not only to handle a cryptocurrency to pay the salary, but to use several cryptoactives. BitWage, for example, offers the possibility to assign the salary not only in bitcoins, but in other 8 currencies and four precious metals. The use of anchored cryptocurrencies or stablecoins is also valid, since they tend to serve as a mechanism to anchor the price of the cryptocurrency to the value of the US dollar or even the euro.
On all these aspects, there is still a way to go, but the advances are significant. It is expected that the cases of companies that implement the payment of salaries with cryptocurrencies continue to increase. Most likely, payments will increase as more technological solutions are generated, and in the everyday, the payment of goods and services with cryptocurrencies will become much more common.
Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and / or services. This press release is for informational purposes information does not constitute investment advice or an offer to invest.