Wouldn’t it be grand if employers could pay us all in cryptocurrencies?
Imagine being paid out a salary of $10k that will rise to around $100k in less than a year. Now, that’s more than 10 years of your work – earned for free – right?
However, this situation is not possible, and the recent volatility of cryptocurrencies is not the main reason why. There are other (four) reasons which act as barriers in the entire situation – and we are listing them below.
1.Some laws specify cash/check payments only
First and foremost is always the law. In many countries, the law says that cash and check payments should be the only means of payment for a salary. However, there may be some extra requirements for minimum wage or overtime, where the possibility of cryptocurrencies can be tucked in.
2.Cryptocurrencies may be deemed securities
According to the Securities and Exchange Commission (SEC), cryptocurrencies are seen as securities. In this case, the employers would have to comply with some additional regulations for securities. Also, they may cross into other geographical boundaries which is a potential problem and something that increases the risk.
3.Employers could feel wary
The fluctuations in value with Bitcoin and cryptocurrencies have made a lot of employers hide away from the idea of even thinking about paying their workers in cryptocurrencies. Still, there is a simple solution to this problem – a debit card that will let people convert amounts from their cryptos in standard currencies and withdraw if they want to.
4.Tax implications vary by country and state
Last on the list is tax. If an employer hires workers and pays them in cryptocurrencies, the tax is somewhat evaded. This needs further regulation too – but the nature of cryptocurrencies doesn’t always allow that.
Do you think that these laws could change? If no, why?
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