Salary in cryptocurrency: advantages and limitations

Salary in cryptocurrency: advantages and limitations

Lithuania and Estonia have already recognized bitcoin as a legal tender. Now in both countries, it’s possible to legally issue a salary in cryptocurrency. The rest of Europe is also considering this issue. Let’s talk about advantages and limitations of cryptocurrency salaries.

There are two payment strategies.

The first is to give out the bulk of the salary in fiat, and the premium — in digital money. This solution has several advantages:

• first, it allows employees to be interested in using cryptocurrency;
• secondly, it helps to motivate employees in the best work, because the size of the award can grow after the payment;
• third, the main part of fiat is reliable insurance against fluctuations in digital money rates.

The second strategy is to pay the entire salary in cryptocurrency. For blockchain startups it is profitable for the following reasons:

• save money and time for the withdrawal of funds in fiat;
• cryptocurrency salary may interested millennials who are employees of such projects;
• a good way to pay remotely, especially if employees work in different countries.

Disadvantages of the cryptocurrency salaries:

• commission for the transfer to fiat;
• restrictions on use due to government regulation;
• cryptocurrency volatility, which can lead to a sharp drop in salary.