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Ever since the inception of cryptocurrencies, payments through digital currencies seems to have become the new norm. Therefore, it comes off hardly as a surprise that a growing number of companies operating in a range of industries are now tempted to draw the immense benefits that come with the crypto payroll.
Also read: Best Crypto Payroll Softwares
In recent times, many companies have turned to platforms that facilitate payment of monthly remunerations in cryptocurrencies. If you own a firm with a substantial number of employees working for you, then you landed in the right place.
Read on to know why it’s worthwhile to hop on to the bandwagon of crypto payments and how it can help you and your company benefit in the long run.
Why Cryptocurrencies Are the Next Big Thing in Salary Payment Mechanism
Can cryptocurrencies transform the future of payroll execution? Can it go on to become a substantial recruiting driver for the youth, especially the ones living in some of the biggest cities around the world? Pick up any blockchain news magazine, the answer to all the questions mentioned above would be in the affirmative. However, the volatility of cryptocurrencies could be something that could hinder the adoption of crypto payroll by companies.
Can Cryptocurrencies be Leveraged as a Significant Work Perk?
Since 2018, the GMO Internet Group has been paying its employees salaries in the range of 10,000 yen to 100,000 yen in Bitcoin. The employees also get incentivized through an additional 10% of the salary that they opt to receive in Bitcoin.
Another company that is exploring the endless possibilities of the crypto world is Youteam, which is a hiring platform. It provides companies with qualified blockchain engineers. Apart from helping companies hire candidates with a background in blockchain, it also provides them with the option to pay their recruits in cryptocurrencies.
The lucrative returns that cryptocurrencies provide are a significant motivation for employees to choose firms that pay via cryptocurrencies. As for the companies, it suits their needs if they are looking forward to launching their mining operations or blockchain development platforms. Thus, a higher degree of blockchain and crypto adoption bodes well for them.
Why Getting Paid in Cryptocurrencies is a Lucrative Option
Payments through cryptocurrencies have their share of pros and cons. Let’s evaluate both the advantages as well as the disadvantages to ascertain if crypto payroll can benefit the companies and their employees.
Benefits of Crypto Payroll
1. Easy to Use
If the employees are paid via cryptocurrencies, they need not exchange it into fiat currency or exhaust their funds immediately. However, they always have the option to do so if they want; the surge in the number of e-commerce companies has ensured that. Employees can now exchange their digital currencies through various sites too.
2. No Geographical Boundaries
Most cryptocurrencies can be used internationally. Crypto payments can be exchanged into any currency at any point. The smartest people would want their cryptocurrencies exchanged either into USD or other digital currencies when the exchange rates suit them.
Also Read: Best Crypto Exchange Services
The employers too find it exceptionally easy to pay their contractors and employees living in remote areas. The companies can pay their people via cryptocurrencies, thereby allowing them to choose the currency that they want to exchange it for.
3. Low Cost of Transaction
Cryptocurrencies work on the principle of blockchain, which functions on a decentralized peer-to-peer network model. Thus, there is no middleman or intermediate in between to carry out transactions between two parties.
Consequently, there are also very low transactional costs involved. Low management or processing fees make crypto transactions significantly efficient. This is a great bonus for people who have their businesses abroad.
4. Enhanced Earning Potential
As the recipients aren’t bound to withdraw their crypto assets or exchange their funds for fiat currencies, they are at an advantageous position. They can cash out their funds when the exchange rates suit them. It might translate into a lucrative bonus too or they can use DeFi applications to gain a fixed return on their cryptocurrencies.
5. Employer Attracts Better Talent
The benefits mentioned above play a crucial role when employees make their career-related choices and take a call on which company to join.
Crypto payroll helps companies attract some of the most tech-savvy minds in the industry, which can be especially fruitful for companies working in the tech or fintech industry.
Disadvantages of Crypto Payroll
1. High Volatility
Most cryptocurrencies have a highly volatile monetary value because of the lack of government regulations. That’s why it isn’t a good idea for companies to pay their employees completely in any cryptocurrency. But Stablecoins now solve this problem and remove volatility from the equation.
2. Taxation
Although cryptocurrencies are a great financial prospect as their values can increase exponentially, it’s important to note that any surge in their value is subject to taxation under capital gains in some countries. Thus, one must pay capital gains tax on the enhanced value of cryptocurrencies.
Read Also: Best Bitcoin Accounting and Tax softwares
Conclusion
It goes without saying that introducing crypto payroll in companies could go a long way in ensuring a more crypto-friendly society. While there are many advantages of paying employees via cryptocurrencies, there are a few demerits too. However, if the recipient has an understanding of the market and regulations, the downside shouldn’t discourage them from adopting cryptocurrencies on a wider scale.
About the Author
Hi, I am Sujit. I am a passionate blogger and crypto admirer currently working for Cryptoknowmics which is known for the best top blockchain events 2019 listing and latest airdrops. I like to find and share new information across the web. You can follow me on Twitter and Linkedin too.
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