In 2024, it’s not that uncommon for employers to ask if you would like to receive your monthly salary in crypto. It’s not that uncommon for a job applicant to ask whether the company offers crypto payments, either.
Why?
Well, because crypto payments benefit everyone. To further illustrate this point, here are the top five advantages of paying your staff with cryptocurrencies and why they would be smart to take you up on this offer (when available).Â
1. They already invest in crypto
What do you think your staff members do with their paychecks? Sure, they spend a part of it (or most of it, depending on how much they make) on their regular expenses, but those who are finance savvy probably invest the rest. Instead of just putting it into a savings account, the money you invest is making you more money, which is far better than keeping it in a dormant state.
Cryptos are a great way to diversify your investment portfolio, especially if you’re willing to diversify further with utility coins, stablecoins, and so-called meme coins. These are less known and more volatile, but with the right risk management, they can massively capitalize on them.Â
Moreover, you need to keep two things in mind. First, the majority of remote employees have multiple sources of income, which means that they’re getting paid in multiple currencies. Exchange rates alone can be very difficult to deal with, and you can easily avoid them with crypto.
Since they’re getting paid in multiple different currencies, they can even make an arrangement where they accept fiat payments from some vendors (for their expenses) and directly turn into investment/savings whatever they get in crypto.
Second, cryptocurrencies are liquid, which means that, via the right platform, it will take seconds to exchange them for the fiat currency of your choice.
2. They use it every day
Cryptocurrencies are no longer just some marginal way of anonymously paying on the internet. Sure, anonymity is still one of the main reasons why people love using crypto, but in 2024, there’s so much more to it.
Just look around some of your favorite online marketplaces and check out payment options. Chances are that you’ll see the option to pay with crypto. This means that you can buy digital assets or even order products by paying with crypto.
You can pay your subscription, renew a software license, and even find a cryptocurrency casino to play at.
With cryptocurrency adoption increasing with each passing year, the idea of using crypto as money is looking more obvious than ever. In fact, with the rapid growth of mBanking and the fact that everyone and their grandmother have a crypto wallet in 2024, it might not be long until you can use crypto to pay at a hot dog stand.
Remember that, for a lot of people in remote areas, payment comes in USD or EUR but they also have to exchange them in order to use them right. This makes people deal with unfavorable exchange rates and, when they can pay in crypto, this risk is non-existent.
3. Remote (unbanked) talent
One of the biggest bottlenecks in working remotely is the payment methods available.
A lot of areas are unbanked or underbanked, which doesn’t mean that they’re not filled with talent that would be, otherwise, ideal for your line of work. Outsourcing is at an all-time high and payments can be a serious roadblock unless you find a solution.
Imagine a scenario where you meet someone talented and possessing all the traits your business requires. Then, they pass all your tests, their CV looks stellar, and when you offer to pay them via direct transfer or PayPal, they say that it’s a bit of a difficulty for them.
Well, with cryptocurrencies, this will never be an issue. All you need to start a crypto wallet is to own a smartphone. You don’t even have to give your full name, seeing as how a pseudonym is enough to register for a crypto wallet and start receiving funds right away.
Now, here’s a catch. Some of your employees may have migrated from their less-developed homeland and are sending remittances back home. Cryptocurrencies are the most convenient way to do so, and by paying directly to them in cryptocurrencies, you’re cutting the process short and making it more convenient for everyone.
4. Privacy, anonymity, and reliability
Another thing you need to understand is the importance of privacy and anonymity. When talking about cryptocurrencies, most people immediately assume that this anonymity is used for something malicious (like tax evasion); however, this doesn’t have to be the case.
In the previous section, we talked about unbanked and underbanked regions; well these regions are also often known for high levels of criminality. Under these circumstances, any large transfer from abroad (which is often the case when taking jobs from agencies in more developed countries) needs to be kept as quiet as possible.
Other than that, people sometimes buy things or spend money on items they don’t want people to know about. We’ve already talked about playing at online casinos, but the same thing applies to purchasing a number of items. While this is nothing illegal, it’s your own private business, and you want to keep it this way. Paying with crypto will help keep it this way.
Also, in 2022, PayPal just froze the $1.3 million assets of tech startups without any explanation why. With crypto payments, such a thing couldn’t have happened. Why? Well, because of the nature of DeFi, there’s no one with their hands on this type of levers of power. This makes crypto transactions much more reliable under unforeseen circumstances.
5. Fast, low-fee transfer of funds
When it comes to payment, difficult international transactions can cause massive fund attrition, which means that you’ll end up paying far more than your employees will receive. If they’re from an underdeveloped country, even a few dozen dollars that will be lost in a transaction can represent a significant loss.
Crypto transfers are immediate, and the fees are low (since there are no intermediaries in DeFi).Â
As an employer, this might not be a high expense, but this is probably not your only transaction. The worst part is that you get literally nothing for it. It’s not just that you lose those $20-$30 per transaction. If this went straight to your employees, this would be an extra value. It’s that you get literally nothing to show for it.
The irony of the fact that this is easily preventable and avoidable will hit you hard. All you need to do is adopt new payment methods (like paying your employees in crypto), and all of these troubles will magically disappear.
Paying with cryptocurrencies benefits both the employer and the employee
Of course, we’re not suggesting that you need to make all your payments crypto-exclusive; just add it as one of the options. This won’t make your accounting much more complicated, and it will unlock many new possibilities and advantages. It’s a simple executive decision that will yield many benefits in the long run.
