Is It Time to Pay Salaries With Crypto?

2 mins read

Listen to this article:

When searching for a new job, one of the most critical questions to ask pertains to salaries. Accepting a job involves looking at lots of factors, but salary can be one of the most important deciding factors. After all, you have bills to pay and you need to be sure you can pay them and hopefully have some money left to do fun things. And an employer has to be sure the job they’re hiring for is commensurate with what they can afford to pay in salary. 

It’s a bit of a balancing act, really. And until now, job hunters in the United States really didn’t need to ask much about how they’d be paid--just when and how much. Today, however, asking how a company pays its employees’ salaries is becoming a necessary question. Here’s why. 

Cryptocurrency As a Salary?

In addition to paying salaries with the typical dollar, crypto is now coming into play. In fact, JP Richardson, the CEO and founder of Exodus, is paying employees in bitcoin only, according to Forbes. Exodus is actually a digital wallet option for holding bitcoin and other forms of crypto. 

Perhaps it’s not too surprising that the CEO of a crypto-focused company is paying his employees in crypto. But he’s also allowing the employees to work remotely, embracing the post-pandemic way to approach work. 

More surprising is the fact that Richardson started the company out of Nebraska, of all places. And at Exodus, they don’t hide their salaries. Everyone there knows what everyone else is making, which is pretty revolutionary. 

CNN reports that UnitedMasters is another company offering an option of getting paid in cryptocurrency. UnitedMasters distributes music here in the United States. They decided to work with Coinbase to let their musicians opt for payment with crypto to collect royalties on their songs. 

Steve Stoute, CEO of UnitedMasters, told CNN: "What we're seeing is a decentralization of artists and creators not relying on legacy systems anymore. As they move away from that center, it's going to be opportunities and scenarios like this where they want to have the tools and the options to do things at their fingertips."

Why Consider Crypto for Salaries

So, why would someone want to consider paying their employees in cryptocurrency? Dennis Consorte, Small Business Consultant and Expert at Digital.com, has some thoughts, saying, "Let your workers choose how they want to be paid and you'll attract people with a variety of preferences. Also, consider offering your employees benefits like access to bitcoin-backed IRAs which may offer certain tax advantages.”

Plus, Consorte continues, “Right now, it's a great idea to look at crypto and possible hedges against inflation. The last time inflation was this high was over 30 years ago, which means the dollars you have in the bank are losing value every day.” 

And yes, there’s a tie-in with the current Ukraine situation. Consorte notes, “When Russia invaded Ukraine, many people couldn't access their bank accounts. Some people used bitcoin to pay for transportation out of war zones. The odds of that exact circumstance happening in the United States are generally lower. But these are uncertain times, and it never hurts to be prepared."

The Salary of the Future

Paying employees or creators in crypto isn’t that common--yet. However, it could be the way of the future.

 

You may also like

Recent Articles