Since cryptocurrency is becoming more of a reality, in this slogging thread we discussed in our technology channel the future of payments through cryptocurrency. We covered topics such as if this is the future for payment in companies and how close this new reality can be, as well as its advantages and difficulties in some countries.
This Slogging thread by Sara Pinto, Linh Smooke, Mónica Freitas, Limarc Ambalina, Abeer, Favour Amadi, Jack Boreham and Ellen Stevens occurred in slogging's official #technology channel, and has been edited for readability.
What do you think of companies starting to pay their employees with cryptocurrency? Do you think it will become a new reality?
I've come across the news that the football player Messi has received part of his pay, when he changed teams to Paris Saint-Germain, in a type of cryptocurrency. This type is "PSG fan tokens", which allows the owners to have an opinion in certain aspects of the football team, such as some awards. https://www.marketwatch.com/story/leo-messi-will-receive-part-his-pay-in-cryptocurrency-should-you-do-the-same-11628790797
Mónica Freitas, Jack Boreham, Limarc Ambalina, Favour Amadi, Abeer, petar.btc and Rohan Dominic
We do it at HackerNoon! We have 25 employees and contractors both in the US and international. Banks always charge hefty price for intercontinental transactions so crypto payments have been such a nice break lately!
Sara Pinto, as crypto is still a difficult subject for me to grasp, I'd have to ask that my paycheck be transferred via the traditional ways. But, I think paying through cryptocurrency will pick up, and we'll see more and more companies offering this option. I don't believe it will be the primary option, though, as most people aren't familiar with crypto.
Linh Smooke, that's great! I think it's a good innovation regarding payment since those charges can be excessive. If you don't mind me asking, has any obstacle come up?
Mónica Freitas, I understand. Since I'm not an expert as well, I think for me it would depend on the type of cryptocurrency, its value, and the need I would have for actual money. I also agree that may not be the primary option, at least for now. Do you agree that it could be more beneficial in specific aspects? For example, in the Messi case, he will have a certain amount of power inside the club, which may give him advantages as a player when it comes to nominations to awards. I think this is a great strategy
Sara Pinto, it depends on the company. For companies that have workers all over the world, yes it will become a reality and it can't come soon enough. Having experienced this at HackerNoon: modern banking is the most painstaking, and red-tape-filled institution ever. Modern banking practices make it harder for people in lower-income countries to get paid (which defeats the purpose). Some countries like Pakistan don't allow online payments like Paypal for example. Or I even heard of one person we tried to pay at HackerNoon that said she had to have a certain amount of money in her bank account before the bank would allow us to wire transfer money to her. That makes no sense: having to prove you have money before you're allowed to receive money
Crypto can hopefully solve this
Sara Pinto, I totally think payment through Crypto would be a fantastic idea. Cut out all the middlemen and the hoops… and boy, in finance, there are a lot of middlemen and hoops to jump through. Especially with Stablecoins, there isn’t even much fear about fluctuation. I just wonder how Governments would take to it as there are a lot taxes and paperwork that need to be filed.
Also, I just caught up with the thread. HackerNoon pays some of their employees with Crypto? That is sooo cool!
Linh Smooke, were there any paperwork or hoops you guys had to jump through to do it? Or was it just as simple as sending their income as crypto instead of fiat?
Sara Pinto, It can be helpful in terms of intercontinental, better yet, inter-currency exchanges, facilitating the processing of salaries without making you lose money on bank fees.
Sara Pinto, as for the Messi case, thought it is interesting, how does nominating awards represents an advantage for him? Is it just a perk? An offer for accepting payment in crypto?
Limarc Ambalina, That makes a lot of sense. Unfortunately, it all comes down to all the bureaucracies that only make life harder for people. If cryptocurrency can help solve this type of problem, I can't wait for it. But for that, the first step is to educate people. Otherwise it won't be easy to introduce this topic as being a viable way
Abeer, That is a good question. The government must have some kind of system implemented since it is already something happening. I did find an article about taxes over cryptocurrency income in India. It says that the government plans to bring "cryptocurrencies under the tax net". I'll leave it here if you want to know more: https://www.businessinsider.in/cryptocurrency/news/government-may-change-income-tax-laws-to-tax-cryptocurrency-gains-in-budget/articleshow/87802508.cms
Mónica Freitas, In my point of view, it brings an advantage because he may be able to nominate himself in such things, drawing more attention to him (not that he needs). For me, it seems like a strategy. He may be short a couple million dollars, but receiving a way of having power will also benefit him.
Sara Pinto, I think it is a welcome option especially as remote work is fast becoming a thing. With remote workers comes a lot of payment processes and hoops to jump through for companies, being able to get paid by just a click is a breath of fresh air and everybody can do more with the time saved.
Sara Pinto, That will make awards a bit biased 😂 but I can see how that can benefit Messi.
Favour Amadi, I completely agree with you. Hopefully, it will stay like that, and there won't be many obstacles with this type of payment
I think it will, PayPal is starting to adopt it and many other big brands. For us freelancers and interns, PayPal adopting it is a big win.
For the time being it can be viewed as a type of investment. Companies sometimes issue shares as an addition to the salary. Crypto, while volatile, can bring in quite a bit of wealth as well. Which deviates from standard pay. I think there is room for both, but at the end of the day until most areas of society accept crypto, it can't be the only mode of payment.
Jack Boreham, I didn't know that Paypal was already applying cryptocurrency as payment. That's quite interesting! Maybe receiving salary in this way is closer than we think to a common alternative. Do you think people are gonna be receptive to this?
Ellen Stevens, I completely agree, the bigger issue is if people will accept this type of payment, although companies may be willing to. Even though it is an exciting thought and becoming more achievable each day, there's going to be some obstacles in the way, such as this one
Sara Pinto, without a doubt! But I think it might take around a decade for it to catch on!
Sara Pinto, have you invested in crypto?
Jack Boreham, Not really, I'm still getting the hang of it about crypto, I'm very new to this world. Have you invested? Do you think it might be a good investment?
Sara Pinto, it's worth it if you have some spare money, but not if you don't. The markets are so volatile, so its difficult to make money. I've invested a small amount, but it's more of a trial period for me.
Jack Boreham, The thing about crypto, as far as I know, is that even though it might my valuable, it won't help you if you actually need cash. I hope your experiment goes well
Sara Pinto, that's true. Hopefully one day we will get there