Recently, in the USA, Miami’s City Hall approved the payment of public servants’ wages and payment of fees and taxes with bitcoin. More than an isolated measure, the decision – which now depends on partnerships in the area – could become commonplace in the future.
“Given its characteristics, in ten years, bitcoin will be mainstream in the world economy. You will be able to have several currencies, carbon credits, Facebook currency, but all backed by bitcoin because it is the bank that everyone trusts”, predicts the head of Operations at Bitwage in Brazil, Fabiano Dias.
His prediction is well-founded. Other companies may soon follow the move Tesla has made in buying bitcoin to keep in cash. This move could generate a virtuous circle in which other companies start buying bitcoins as well. Besides, as Microstrategy CEO Michael Saylor evangelizes, they could even start converting their balance sheets to the leading cryptocurrency.
Earnings in bitcoin and altcoins is still niche
Not many companies pay their employees in bitcoin yet. Currently, this is happening more in particular niches, such as software and system developers and streamers.
Despite this, business in this area is growing. Today, Bitwage has a wallet in Brazil of US$ 800,000.00 to US$ 1 million/month paid in cryptoassets by the company. The payer makes a transfer (in fiat or crypto) to the company’s account, which distributes the funds as the payee wishes – in fiat currency, bitcoin, altcoin, or stablecoin – and may even choose some proportion among these possibilities. Globally, the company has a US$ 3 million monthly wallet.
The company recently partnered with Bitfy to allow professionals worldwide to receive compensation in Cello (cUSD), a dollar-backed stablecoin. And, consequently, to store the funds in the company’s wallet.
The business has also been successful in Argentina, where currency restrictions encourage workers to choose other ways to receive their wages without being held hostage by the blue dollar. The Argentine market is already similar to the Brazilian one.
Payment of wages in bitcoins is legal for expatriates and service providers
And is it legal to pay salaries in cryptoassets? “The payment of expatriates or service providers is perfectly legal with cryptoassets. If it’s a regular employee, then labor law issues come into play”, says Julian Lanzadera, head of Business Development Latam at Transfero.
Bitwage’s customers include Bitcoin.com, developer of Bitcoin Cash, an airline in Europe, and companies that hold cryptocurrencies in hand and want to pay their employees with these assets.
It is worth noting that Bitwage is not the only one that allows payments and receipts of employees in cryptocurrencies. Other companies and tools on the market make it possible to convert wages into cryptocurrencies. For instance, some wallets allow direct conversion, the use of stablecoins, and even digital banks that do this service.