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HOW PAYROLL CAN GROW CRYPTO

Think of how much you use cash today. Not very often right? Everything is on credit cards, debit cards, and cash sending apps like Venmo/PayPal. About 50 years ago, companies started using direct deposits instead of checks/cash to pay their employees. Bi-weekly pay is even becoming a thing of the past, with some companies even paying out the same day of work. Companies are now even beginning to pay out their employees in cryptos of their choice. Employers, like Coinbase, are even testing to pay employees using crypto of their choice.

The New Normal?

Many companies are even beginning to accept bitcoin as an alternative to fiat money. So, one could believe that being paid in crypto is not far behind in the future of payroll. Paying employees in cryptocurrencies would allow them to receive pay almost immediately and anywhere they please. Paying in crypto removes the third party that is the regular banks. Some companies think that offering to pay in cryptocurrencies can use it as a method to get higher-end technical talents. Offering such pay can be viewed as “forward-thinking” by many people and may help strengthen recruiting.


If major companies begin to start paying in crypto, as they are already starting to accept payment in crypto. It can begin to grow and banks could be in trouble in the future. Think of the bitcoin ATMs you are beginning to see in the local grocery stores or the news that has the latest crypto jumping up in prices every day.


However, there are many setbacks to crypto, as some states have not paid in USD currency to be illegal. There are laws enacted by the Fair Labor Standards Act, which mandates that employers pay wages “in cash or negotiable instruments payable at par.” Kryptos like Bitcoin, Etherum, and Dogecoin does not fall into this category and become a rather grey area. Not to mention, all cryptocurrencies move prices a lot and can result in a loss or gain of a decent chunk of change in a matter of minutes. So, it is not as reliable as cash, which loses its value at a much slower rate compared to cryptocurrencies. Only the future will tell what will happen, but when/if companies begin to start having plans to pay out in crypto, like Bitpay, which has a system that does allow companies to pay in crypto, in certain states.


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