Rise in Salaries Paid in Bitcoin as Employees Opt for Crypto Amid Economic Uncertainty
Human Resources industry executives have noted that employees are willing to receive their salaries in Bitcoin (BTC), given the current hyperinflation and political conundrum in many regions worldwide.
Recent bank failures and volatility among fiat money are shifting people to opt for stablecoins like USD Coin (USDC), sources told Cointelegraph.
Several high-profile sportsmen and politicians have already chosen to receive part of their monthly pay in the form of Bitcoin. New York City Mayor Eric Adams vowed after his election that he’d accept his first three paychecks in BTC. American football player Odell Beckham Jr. opted to take his entire NFL salary in Bitcoin.
Michael Brooks, CEO and co-founder of goLance noted that factors such as growing crypto education, increased acceptance of the asset class as a legitimate payment method and nascent tech developments have triggered even ordinary people to shift to crypto paychecks, irrespective of its instability.
“Some regions experiencing political instability, hyperinflation or restrictive financial systems have seen an uptick in cryptocurrency usage as an alternative means of conducting transactions.”
goLance has been paying its employees in cryptocurrencies since 2021.
Global payrolls and hiring company Deel COO Dan Westgarth told the publication, countries such as the Caribbean that face more currency turbulence and have outdated banking systems, look to an alternative like Bitcoin as a means to pay employees.
Data from Deel showed that the highest level of crypto payments was from Latin America, notorious for its high inflation rates, with 54% of crypto withdrawals between January and May 2023.
The company said last year, it had partnered with crypto-platform Coinbase Global Inc. so that payments to contractors are directly converted into the currency of their choice.
Cryptocurrency Paychecks Has its Appeal
Since crypto is decentralized, crypto-funded payroll systems favour both employers and employees. The payments are swift across borders, require no intermediaries and can be sold or converted in minutes.
Select firms across different countries encourage crypto salaries. Sequoia Holdings LLC, an Australian IT firm, for instance, allows its employees to receive a part of their remunerations in Bitcoin, partnering with a third-party payroll processor.
Bitcoin will “most likely” become a bigger proportion over time, Goldman Sachs said in a list of 2022 predictions.
Though the benefits of receiving compensation in cryptocurrencies are plenty, like reduced or no taxes, options for diversification, and more; regulations and compliance issues, and volatility are some of the recurring challenges for crypto earners.