Hint: the answer depends on whether or not you use Papaya Global to manage your global workforce
It’s hard to go a day without hearing about cryptocurrencies and the rising value of Bitcoin in the news, and for good reason. Since 2008, there has been a movement to decentralize and digitize the banking world. The result of this movement was the creation of a new technology (called blockchain) that serves as the foundation for Bitcoin, Ethereum, and a variety of other virtual denominations.
So how does that impact global workforce and employee management?
In more ways thank you think!
Today, more and more companies are globalizing and as a result, the competition for the needed workforce is fierce. Because of this, bringing in new talent often comes down to the employment package and payment terms that a company can offer – and this is when employee payment in cryptocurrencies becomes relevant.
The addition of cryptocurrencies as a supported payment method is particularly beneficial for companies looking to expand in countries where the local currency is volatile (such as Turkey, Russia, Brazil, China and many more). In such countries, when the currency fluctuates, the employees suffers directly from the inflation.
If an employee has the option to receive their salary in two different currencies that are not dependent on one another, this gives them an added layer of security as well as the potential to earn more if the cryptocurrency market continues to rise. Even in countries where the currency is stable, many professionals are still eager to receive payment in virtual currency due to their rising value and popularity; making digital currency an appealing payment method for employees all over the world (as well as a great perk to offer employees).
The reason companies have stayed away from cryptocurrencies until now is simple – regulation and compliance just seems to difficult. By integrating the payment method to our already advanced system, we have solved compliance and regulation concerns while ensuring companies have an easy way to report cryptocurrency payments to local tax authorities.
Beyond providing the legal knowledge and support to help companies stay compliant, Papaya hedges the risk of the digital payment by limiting the salary allocation to 30% of the net salary. In doing so, Papaya Global is able to help companies limit the risk employees take with their salary.