Why You Should Pay Your Employees in Crypto

Money is the motivating force for many employees. However, there might be an even better way to get the best out of them. Cryptocurrencies are slowly becoming integrated into the mainstream economy and some companies are choosing to pay their workforce in crypto rather than traditional American dollars. Here are a few reasons why you might also want to take this route.

Money That Grows in Value

Most money loses its value over time. This is due to inflation. That means that your employee’s paycheck will be worth less by the end of the month than when you paid them. Also, each month, they’ll be getting slightly less unless you’re increasing their wages every pay period. When you pay them in crypto, you don’t have this problem. While crypto can fall in value, it can also grow.

Bitcoin, for instance, has achieved an annual growth rate of 113%. That means that if you pay an employee $2000 for a month’s work, then a year later, it’ll be worth a mouthwatering $4260. You’ve not paid them any more than usual, but they’ve made a ton more money. Of course, you may have to cover the risk if their money falls in value.

Speedy and Efficient Payments

Cryptocurrency, by its nature, it’s a fast and efficient way to pay employees. If you’ve been doing it by bank transfer, then you may have run into some problems with the payment taking days or even weeks to process. On top of that, banks often won’t send money over the weekend, meaning employees could be left broke until Monday.

When you pay a staff member in cryptocurrency, the transaction will go through in an instant. Your employees will no longer be waiting around to get paid. They can also plan their spending to coincide with payday because they know exactly when it will be. It can also be more cost-effective because crypto is subject to capital gains tax, which may be lower than income tax in your state.

Attracting the Right Talent

Not everyone is into crypto, but those who are tend to be of a particular disposition. They’re libertarian-leaning and suspicious of our over-reliance on government. They’re also interested in the future and technologically minded. These are the kind of independent workers that you may want to help your company progress.

If you work in the finance sector, then seek out a financial industry employment lawyer who can help you make the transition towards paying staff in crypto. They’ll be able to explain your legal rights in the area in which you operate and will help you put in safeguards to minimize the risks of this strategy.

Paying someone in crypto does come with some risks that you’ll have to manage. You may also want to pay it alongside using regular US dollars, rather than instead of them. Consult your workforce to see what they think of this idea and whether they’d be interested in accepting crypto as payment.