After accepting bitcoin as the nation’s legal tender, the government of El Salvador is discussing whether companies should pay their employees in bitcoin.
El Salvador is considering paying employees in Bitcoin
In a tweet by a local radio station 107.7 Fuego on Tuesday (June 15, 2021), the government is looking into the possibility of companies’ workers receiving their salaries in BTC. This was revealed by the Minister of Labor, Rolando Castro.
According to Castro, the decision to pay salaries in bitcoin will be made once bitcoin’s legal tender status becomes law. The Ministry of Labor is working with the Ministry of Economy and Finance to analyze the decision.
As reported by CryptoPotato in early June, the vast majority of El Salvador’s Congress voted in favor of President Nayib Bukele’s bitcoin plan. Even a Google search for “El Salvador” hit an all-time high (ATH) following the announcement.
While the nation’s decision to adopt bitcoin has received praise from BTC enthusiasts and the crypto community, the bitcoin move has raised concerns, especially from financial institutions. Global.
However, El Salvador continues to grow with its bitcoin ambitions despite the skepticism. Recently, the Central American Bank for Economic Integration (CABEI) announced that it will provide technical assistance to the government of El Salvador in implementing BTC as a legal tender. The government is also planning to mine bitcoin with volcanic energy.
Does El Salvador pay employees in Bitcoin?
The country’s president says Bitcoin becomes legal tender in El Salvador, becoming the first country to adopt the cryptocurrency for everyday use.
Lawmakers in the Central American Congress passed a bill late Tuesday that would eventually allow the famously volatile digital currency to be used for many aspects of everyday life, from buy property to contribute tax.
The 39-year-old leader said a majority of 62 out of 84 lawmakers passed the bill he proposed
The bill was passed with the support of Bukele’s allies although minority opposition parties – who have criticized the speed of the vote – refused to support it.
The law will create mechanisms to help Salvadoarans, especially small businesses, quickly convert the payments they receive in bitcoin into dollars – helping them avoid the risk of a sharp drop in value, as already noted. happened in recent days
By law, bitcoin must be accepted by companies when offered as payment for goods and services. Tax contributions can also be paid in cryptocurrency.
However, paying employees in Bitcoin is still being discussed and considered at El Selvador.
There are many advantages of paying salaries in Bitcoin that are worth considering for this country such as:
Reduce risk for employees
If you are working for a company and do not want to reveal your account information, then receiving salary in Bitcoin is extremely appropriate. In case of using a fiat currency payment system, you need to tell your accountant all your account details in order to receive the payment; however this is not the case with Bitcoin.
Bitcoin understands the need for security and privacy. Every time a Bitcoin transaction is made, it is made to an anonymous Bitcoin address, and this address changes each time the transaction is made.
Despite being a cryptocurrency, Bitcoin is much safer than fiat currency. Cryptocurrency holders enjoy a certain level of privacy and security compared to debit and credit card holders. Unlike digital cash, hackers cannot easily intercept a crypto exchange’s account details, making it difficult for them to hack any crypto trader’s accounts.
Lower transaction fees
That’s an advantage for the payer. Bitcoin’s transaction fees are much less than that of fiat currency. Bitcoin transaction fees are 000.1 to 000.3 percent of the entire transaction, while for fiat currencies, the transaction fees are as high as 30 percent of the entire transaction.
Bitcoin gives you the freedom you need from taxes. No third parties track your transactions and charge you for your purchases. Since the buyer’s identity remains anonymous, the buyer need not worry about taxes.
Overall, with all the above advantages, if you are an employee in El Slavador – where Bitcoin is accepted as legal, then surely you are ready to be paid in bitcoin monthly, right?
And with the shopping of goods and paying taxes in bitcoin happening in the future, the fact that companies in El Salvador pay employees in this cryptocurrency will be adopted sooner or later.
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