Get Paid Wages in Bitcoin or Crypto: Who, Why & How
Bitcoin salaries launch with pro sports athletes— 2018
Earning wages, salaries or sponsorship deals in Bitcoin or cryptocurrencies is still relatively new. 2018 was an audacious year where professional sports athletes and their employers launched a growing trend; getting paid in Bitcoin!
In January 2018, BBC reported that Turkish football club paid player Omer Faruk Kıroglu’s transfer to join club Harunustaspor in cryptocurrency. Omer was rewarded 0.0524 in Bitcoin and 2,500 Turkish lira (just under $500 USD) to join this first division club. For such a small financial transaction, the question begs,
“Why pay in crypto at all?”
Club chairman Haldun Sehit told the CNN Turk …
"We did it to make a name for ourselves in the country and the world". And create a global buzz it did!
Soon after in February 2018, Canadian speed skater Ted-Jan Bloemen made headlines for becoming the world’s first Olympics athlete to be paid his sponsorship deal in Bitcoin, at the 2018 South Korea Winter Olympics. About this deal, Ted’s agent said,
“This is really a whole new frontier. It will be exciting to see how cryptocurrency can work …”
In quick succession was top Danish ice-hockey player Nikolaj Rosenthal, accepting a deal to be paid exclusively in Bitcoin. Encouraged by the new team sponsor Bitcoin Suisse, a leading broker, asset manager, and crypto financial service provider co-founded by Danish billionaire Niklas Nikolajsen, Nikolaj spoke enthusiastically in a Youtube video about how he views his Bitcoin salary deal ...
“I know there’s a huge risk … but I think the future is really bright for Bitcoin and alt coins and Blockchain in general”.
Since these three, many other sponsorships and salary deals for sports professionals have followed suit, with most recently in May 2019, “wannabe paid in Bitcoin” campaigners USA-based NFL quarterback Matt Barkley, and fellow NFL player Russell Okung taking to Twitter to tweet their bosses to “Pay Me in Bitcoin”.
What’s exciting is that Bitcoin and crypto are emerging into public view as mediums of exchange that people (other than the obvious technology developers or crypto enthusiasts) can get paid in, for doing their job. A very positive trend and a much-needed boost showing increased cryptocurrency acceptance by a wider market of users, all happening within 10 short years of the Bitcoin genesis block being mined.
Employer Policies — Paying Salaries in Bitcoin or Cryptocurrencies
The table below shows a sample of ten who’s who of crypto-friendly or massive global brand employers, as reported in various crypto industry or mainstream on-line media, who currently offer their staff part or full payment of salaries in Bitcoin or cryptocurrencies. Unsurprisingly the majority of the companies referenced, having a blanket policy of offering staff salary payments in BTC are USA based, with the exception of GMO internet giant based in Japan. Both countries have affirmative regulatory acceptance of the cryptocurrency sector in general, with Japan holding a very positive stance to seeing the sector flourish.
Notably, all these companies/organizations have substantial technology-based business models, plausibly making them more amenable to the mindset of tech innovation, and therefore Bitcoin and cryptocurrencies, blockchain and encryption technologies, and the disruptive processes such as decentralization & consensus politics, that underpin their success.
Of the sample cohort, the Bitcoin Foundation is the only employer who obliges all staff to accept Bitcoin in full payment of their salary. A completely understandable situation as the BF mission is to …
“coordinate the efforts of the members of the Bitcoin community, helping to create awareness of the benefits of Bitcoin, how to use it and its related technology requirements, for technologists, regulators, the media and everyone else globally”.
Interestingly GMO Internet Group’s motivation to pay employees a portion of their salaries in Bitcoin was “to help them better understand the virtual currency by encouraging actual use of it”. They offer staff partial pay up to 100,000 yen (£660/$890) worth of Bitcoin monthly.
On the other hand, Spot IM’s reason for offering Bitcoin payments was that extra taxes are avoided (in Israel) and that the employees love it.
In a recent interview with Adam Poulton, Co-Founder of Get Paid In Bitcoin, an Australian start-up that facilitates Australian employees getting paid in BTC, for a nominal $1.00 transaction fee and a currency exchange spread, he says that GPIB is working with several Australian companies interested in offering their employees partial salary payments in BTC as well.
How Employees Can Receive Part Salary Payments in Bitcoin or Other Cryptocurrencies
There are basically two options for employees to receive compensation in crypto. The first option is more complicated and requires organizational approval to integrate crypto payments within the company’s actual payroll system.
Platforms like US-based BitPay and Canadian based Wagepoint are payroll integration systems that make it possible for employees to receive compensation in crypto, with funds deposited directly into their personal cryptocurrency accounts or USD bank accounts.
To make this integration possible for all their clients, Wagepoint’s online payroll software, Wagepoint Pay, is being interfaced with the first and largest Canadian bitcoin exchange, Virtex who will fill the orders.
Bitpay finds that “a lot of the demand comes from companies having to make payments in currencies prone to fluctuations such as Chinese yen, Brazilian real and Russian ruble”. They are hopeful that increasingly more companies will see the viability and effectiveness of crypto payments.
The second option is for employees rather than employers to register for the service and they get their wages converted into bitcoin in 48 hours, no matter where they are located. Well known USA based company Bitwage operates this type of business, launching 5 years ago in July 2014.
For Australia-based Employees
In Australia, co-founder Adam Poulton launched over 12 months ago, a similar business for Australian employees to opt-in to Get Paid In Bitcoin. In interviewing him he revealed that thousands of people in Australia now receive a portion of their regular salary in Bitcoin thanks to the services his start-up business provides.
How it works is very simple. The employee completes and signs a simple form, asking the HR payroll manager to split their salary payments, sending say a nominated amount of $5 and upwards per fortnight or per month to the team at Get Paid In Bitcoin who convert that portion of wages into Bitcoin.
The Bitcoin is then sent to the client's bitcoin wallet of choice with the payment being able to be split between two wallets. The bitcoin wallet the employee chooses may be cold storage — hardware wallet, a software wallet, multisig wallet or an exchange based account. It is the employee's full responsibility to ensure that their Bitcoin is safely stored whatever choice of wallet they choose.
For Australian employees, to start receiving partial salary payment in Bitcoin, please click this link to get started: http://bit.ly/ShopWithCrypto
Co-founder WhereToShopWithCrypto
Disclosure: The author’s business receives an AUD $0.50c commission for referrals to Get Paid In Bitcoin, Australia. Abheeti Kathryn Pass and I are enthusiastic to share with Australians how you can get part of your wages or salary paid in Bitcoin.
