In an intriguing development in the Human Resources world, industry leaders highlight that employees are expressing a growing interest in being compensated in Bitcoin (BTC), due to growing economic and political uncertainties globally. This change is driven by recent banking failures and the instability of fiat currencies which are causing a shift towards more stable alternatives such as USD Coin (USDC).
Prominent figures in sport and politics have already set precedents by opting for Bitcoin payments for their income. New York City Mayor, Eric Adams, for example, committed to receiving his first three salaries in BTC, a path followed by the American footballer, Odell Beckham Jr., who chose to accept his full NFL salary in Bitcoin.
CEO and co-founder of goLance, Michael Brooks noted that factors like increasing crypto education and acceptance of the asset class as a legitimate payment method, coupled with advances in technology, have prompted even ordinary people to consider crypto salaries, despite its known volatility. He points out that regions experiencing political instability or hyperinflation, or those with restrictive financial systems are seeing an increase in cryptocurrency usage as a viable alternative for transactions.
Information from Deel, a global hiring company, indicates that the majority of crypto payments originated from Latin America, renowned for high inflation rates. This wave of change seems to be embraced by firms worldwide, with Sequoia Holdings LLC, an Australian IT company, offering its employees the option to receive part of their salaries in Bitcoin.
Cryptocurrency-funded payroll systems, due to their decentralization, offer enticing benefits for both employers and employees. They eliminate intermediaries and provide swift, cross-border payments that can be sold or converted within minutes. Goldman Sachs even predicts Bitcoin will become a significant proportion over time.
However, it’s important to be mindful that despite the apparent allure, there are also challenges associated with receiving remuneration in cryptocurrency. Cryptocurrency salaries come with their fair share of downturns, such as the potential for reduced, or no taxes, an opportunity for diversification, and more. Also, regulatory, compliance issues, and unpredictability create ongoing challenges for crypto earners, and these factors should be significantly considered.
Source: Cryptonews
