The first advantage of payroll payments with cryptocurrencies is the speed with which they can be processed. Transfers from the company to employees’ digital wallets are made in minutes, even if they are in different countries, except in exceptional periods of network congestion.
Another advantage is that payment can eventually be made outside working hours. For example, on a weekend or holiday, maintaining the aforementioned immediacy. In addition, payments are not affected by the geographical location of the recipients, since they have access to their wallet anywhere with Internet access.
Payments in bitcoin and other cryptocurrencies are, on the other hand, decentralized, which eliminates intermediaries. The handling of the money received is the sole responsibility of the payee. This means that there is less risk of a third party blocking your money, you will always be able to access your savings if you have full custody of the wallet where it was deposited.
Obviously, everyday expenses involve a conversion to fiat money, which is also done in a decentralized way, on peer-to-peer platforms. On the other hand, it may be easier to access legal tender with bitcoin than with the dollar.
For savings plans that the employee wants to carry out, it is only required to keep the cryptocurrencies in the receiving wallet, or transfer them to a wallet intended for savings. This yields more benefits, in the case of conventional payroll, than leaving fiat money in a low-yielding bank account.
However, there are also some risks when collecting a paycheck in cryptocurrencies. When there is an uptrend in the cryptocurrency market, the salary received in bitcoin can revalue in days or even hours. However, it is not possible to predict when a price rebound will last. It is also possible that the trend will change and the market will remain neutral or take on bearish characteristics.
It is for that reason that many bitcoin payment schemes only provide for a certain percentage of the salary. In this way, market swings would only affect a portion of the salary and would not translate into total losses. Of course, those receiving a salary in bitcoin can make more profit if one has a minimal knowledge base about the cryptocurrency.
According to the legislation of each country, those who receive salary payments in bitcoin are affected differently when it comes to paying taxes. In general, in most countries there is no definition regarding the payment of taxes when the income is in cryptocurrencies.
