What if salaries were paid in BTC

[Gallar]

A friend of mine in our discussion today about Bitcoin was insisting that salaries and wages be paid in Bitcoin in some countries.
I was of the opinion that the government will not allow fiat to be replaced by Bitcoin .so what is your take on this

Yes, I totally agree with your opinion, that the government in a country, surely many will disagree if the salary payment system in that country is replaced by using bitcoin. Because even though bitcoin has a lot of potential and can be used as a salary payment method. But still, if local money in a country is replaced by bitcoin, there will definitely be pros and cons in that country. Because for now, people in any country, not all of them know and like bitcoin. So it is because of these factors that will become a big obstacle and will cause a dispute between the community and the government.
Except for the country of El Salvador. Because this country has legalized bitcoin as a legal means of payment, it is very likely that in that country the payroll system can be paid using bitcoin.

will it be a positive move on the Bitcoin ecosystem or not

But for the bitcoin ecosystem, if this can be implemented in a country, of course the results will indeed have a positive impact on bitcoin. Due to the implementation of such a system, it means, so to speak, automatically promotes and distributes bitcoins directly to people in that country. So for bitcoin, the impact is definitely still good. Because it helps the mass adoption of bitcoin.

[Blitzboy]

Having Bitcoin replace cash as a method for paying salaries is kind of complicated

On the one hand, getting paid in Bitcoin would boost interest in the currency, add to its credibility, and possibly support its value. Workers in countries where the currency is depreciating at an alarming rate, such as Venezuela or Zimbabwe, can benefit from this as well. It could be a huge relief to get paid in a cryptocurrency that maintains or increases its worth.

However, volatility is king in the cryptocurrency market. Envision getting paid one day and then seeing a 20% cut the next. Not ideal if you still have to pay your rent or buy food.

Because of the potential loss of sovereignty and control over monetary policy, governments throughout the world may be hesitant to allow Bitcoin displace national currencies. This is undeniably a difficult problem.

[Aanuoluwatofunmi]

A friend of mine in our discussion today about Bitcoin was insisting that salaries and wages be paid in Bitcoin in some countries.
I was of the opinion that the government will not allow fiat to be replaced by Bitcoin .so what is your take on this will it be a positive move on the Bitcoin ecosystem or not

Let's first make it one step at a time, we cannot expect countries to start payment of salaries in bitcoin when they are yet to start the adoption for bitcoin or make their citizens have the legal right of using this decentralized digital currency, but i cannot doubt the possibility of this with the two countries that had already adopted bitcoin as a legal tender together with few other countries that make their citizens enjoys an enabling bitcoin environment to first take the move in making the decision into law in using bitcoin as payment currency for their worker's salaries.

[Mr.right85]

A friend of mine in our discussion today about Bitcoin was insisting that salaries and wages be paid in Bitcoin in some countries.
I was of the opinion that the government will not allow fiat to be replaced by Bitcoin .so what is your take on this will it be a positive move on the Bitcoin ecosystem or not

Good enough not only government pays salaries. Apparently any business owner or CEO to some organisation could choose to pay it's staff in bitcoin or cryptocurrencies of there chosen but, even that has got to be based on each individual staff's decision to be paid in bitcoin  or cryptocurrency.

Not so many would know how to manage it and not so many would want to manage it. Yeah, it could be taught to them but people rather prefer a much stable and government backed fiat currency to a highly volatile and unregulated bitcoin or cryptocurrency.

Bitcoin poses  challenge to most and at that point, it becomes unfit based on each staff individual reasons.

[Mr.suevie]

A friend of mine in our discussion today about Bitcoin was insisting that salaries and wages be paid in Bitcoin in some countries.
I was of the opinion that the government will not allow fiat to be replaced by Bitcoin .so what is your take on this will it be a positive move on the Bitcoin ecosystem or not

Let's first make it one step at a time, we cannot expect countries to start payment of salaries in bitcoin when they are yet to start the adoption for bitcoin or make their citizens have the legal right of using this decentralized digital currency, but i cannot doubt the possibility of this with the two countries that had already adopted bitcoin as a legal tender together with few other countries that make their citizens enjoys an enabling bitcoin environment to first take the move in making the decision into law in using bitcoin as payment currency for their worker's salaries.

Well this is exactly what will come to everyone minds when it' comes country using btc as a payment method for citizen salary because you can't actually use something that is restricted for such purpose so first things first is the adoption of BTC like you said by the supposed country. Still I like to believe that such practice is going on with regions that are vastly involved in the use of crypto even if isn't a legal tender yet because I once read on Twitter that some or should I say most shops in friendly Bitcoin community has started Bitcoin as a means of payment to their service and such business will also make it fair by supposedly paying their workers too with the cash(BTC).

[Nwada001]

MicroStrategy pay their board of directors in Bitcoin.

The cases are different; paying an entirely tech company employee with Bitcoin is easier, as they are all sharing the same common goal, which means that before they can implement that kind of payment option for salary, it might have passed the average vote needed from the company shareholder, and they will also make sure that everyone who is under them understands how that thing they are being paid for works. Micro Strategy as a company is Bitcoin-friendly, as most of their major investments are in Bitcoin. What more could you expect from such a company if not to promote and circulate what they hold?
 
When it comes to bitcoin as a salary for civil servants, the case is entirely different, as we are talking about an entire nation filled with millions of people and not just a company that has less than a thousand employees.

[BenCodie]

A friend of mine in our discussion today about Bitcoin was insisting that salaries and wages be paid in Bitcoin in some countries.
I was of the opinion that the government will not allow fiat to be replaced by Bitcoin .so what is your take on this will it be a positive move on the Bitcoin ecosystem or not

Your opinion is absolutely correct

Managing payroll, conversion and tax with Bitcoin is just as easy as fiat with current accounting software, or even traditional accounting methods. The only thing stopping this from being a reality is government, banks, their fetish for fiat and fear of Bitcoin.

I have read the some countries or large corporations started to allow this option. That news quickly faded, now I hear nothing about it. They probably were told to scrap the option or idea, otherwise financial sanctions/penalties would ensue. I could imagine requests flooding in if the option were made available by all companies and corporations.

The fact that most places are considering Bitcoin as a commodity may also be a part of why this is not happening yet, if we are putting less focus on government/banks and more on benefit of the doubt.

[serjent05]

A friend of mine in our discussion today about Bitcoin was insisting that salaries and wages be paid in Bitcoin in some countries.
I was of the opinion that the government will not allow fiat to be replaced by Bitcoin .so what is your take on this will it be a positive move on the Bitcoin ecosystem or not

If companies decided to pay their employees' salaries in Bitcoin then this only means one thing, there will be a huge demand for Bitcoin because these companies have to buy Bitcoin in order to pay their employees, and imagine how many companies are existing out there.  Anything that provides demand in the Bitcoin market is a good thing for the ecosystem because it will strengthen the Bitcoin market and at the same time make the price of Bitcoin surge.

[DoublerHunter]

A friend of mine in our discussion today about Bitcoin was insisting that salaries and wages be paid in Bitcoin in some countries.
I was of the opinion that the government will not allow fiat to be replaced by Bitcoin .so what is your take on this will it be a positive move on the Bitcoin ecosystem or not

If companies decided to pay their employees' salaries in Bitcoin then this only means one thing, there will be a huge demand for Bitcoin because these companies have to buy Bitcoin in order to pay their employees, and imagine how many companies are existing out there.  Anything that provides demand in the Bitcoin market is a good thing for the ecosystem because it will strengthen the Bitcoin market and at the same time make the price of Bitcoin surge.

^Exactly and on the positive side, adopting BTC for payments could have some advantages for the BTC ecosystem. It could increase mainstream adoption and usage, leading to more widespread acceptance and potential price stability, and using BTC for salaries probably reduce transaction costs and increase financial inclusion, especially in regions with limited access to traditional banking services.
However, it is important to recognize the challenges and potential risks as well because it is possible governments and central banks often play a role in regulating fiat currencies and monetary policies. The Concerns about potential tax evasion, money laundering, and lack of consumer protections could further impede widespread adoption.

[Ultegra134]

A friend of mine in our discussion today about Bitcoin was insisting that salaries and wages be paid in Bitcoin in some countries.
I was of the opinion that the government will not allow fiat to be replaced by Bitcoin .so what is your take on this will it be a positive move on the Bitcoin ecosystem or not

If companies decided to pay their employees' salaries in Bitcoin then this only means one thing, there will be a huge demand for Bitcoin because these companies have to buy Bitcoin in order to pay their employees, and imagine how many companies are existing out there.  Anything that provides demand in the Bitcoin market is a good thing for the ecosystem because it will strengthen the Bitcoin market and at the same time make the price of Bitcoin surge.

^Exactly and on the positive side, adopting BTC for payments could have some advantages for the BTC ecosystem. It could increase mainstream adoption and usage, leading to more widespread acceptance and potential price stability, and using BTC for salaries probably reduce transaction costs and increase financial inclusion, especially in regions with limited access to traditional banking services.
However, it is important to recognize the challenges and potential risks as well because it is possible governments and central banks often play a role in regulating fiat currencies and monetary policies. The Concerns about potential tax evasion, money laundering, and lack of consumer protections could further impede widespread adoption.

I remember a few months ago a member who was claiming that he was being paid in Bitcoin. I'm not sure if his story was true, but let's suppose it was. Personally, I wouldn't opt for it because salary is part of the money you use to satisfy your daily needs, such as paying for groceries, utilities, rent, and so on. Thus, something as vital as your salary, which is deemed a necessity for your livelihood, isn't advisable to count on a currency that is volatile and may be subject to large price deviations from one moment to another. Moreover, so far, it's not as versatile as fiat money, at least not yet; only a few merchants have adopted it throughout the world, and making transactions isn't as simple as paying with your credit card. Whether we like it or not, Bitcoin is more of an asset than a currency. I'd rather set aside X amount of money each month and invest it than be fully paid through Bitcoin.

[isaac_clarke22]

A friend of mine in our discussion today about Bitcoin was insisting that salaries and wages be paid in Bitcoin in some countries.
I was of the opinion that the government will not allow fiat to be replaced by Bitcoin .so what is your take on this will it be a positive move on the Bitcoin ecosystem or not

It could go wrong if you would ask me. I can recall a news back then where an employer wants the paid Bitcoin back from his employee as the price increased. I believe it was around 2021 or just the year when Elon Musk was like a hot topic and hyped the market so much that Bitcoin went around 64k.

We also have government that surely will tax these and knowing that they can't just tax the whole crypto transaction directly. I expect they would impose a law to use a legalized app where they would tax the salaries there. Unless you're okay with authorities seeing how much you earn, it's not really okay.

Edit: This was the news if I can recall it correctly. Employer Wants Cryptocurrency Back From Employee After Price Soars 700%, Offers to Pay in US Dollars Instead

[askmejazzcash]

its depend on the local law.

[kro55]

A friend of mine in our discussion today about Bitcoin was insisting that salaries and wages be paid in Bitcoin in some countries.
I was of the opinion that the government will not allow fiat to be replaced by Bitcoin .so what is your take on this will it be a positive move on the Bitcoin ecosystem or not

If companies decided to pay their employees' salaries in Bitcoin then this only means one thing, there will be a huge demand for Bitcoin because these companies have to buy Bitcoin in order to pay their employees, and imagine how many companies are existing out there.  Anything that provides demand in the Bitcoin market is a good thing for the ecosystem because it will strengthen the Bitcoin market and at the same time make the price of Bitcoin surge.

^Exactly and on the positive side, adopting BTC for payments could have some advantages for the BTC ecosystem. It could increase mainstream adoption and usage, leading to more widespread acceptance and potential price stability, and using BTC for salaries probably reduce transaction costs and increase financial inclusion, especially in regions with limited access to traditional banking services.
However, it is important to recognize the challenges and potential risks as well because it is possible governments and central banks often play a role in regulating fiat currencies and monetary policies. The Concerns about potential tax evasion, money laundering, and lack of consumer protections could further impede widespread adoption.

I remember a few months ago a member who was claiming that he was being paid in Bitcoin. I'm not sure if his story was true, but let's suppose it was. Personally, I wouldn't opt for it because salary is part of the money you use to satisfy your daily needs, such as paying for groceries, utilities, rent, and so on. Thus, something as vital as your salary, which is deemed a necessity for your livelihood, isn't advisable to count on a currency that is volatile and may be subject to large price deviations from one moment to another. Moreover, so far, it's not as versatile as fiat money, at least not yet; only a few merchants have adopted it throughout the world, and making transactions isn't as simple as paying with your credit card. Whether we like it or not, Bitcoin is more of an asset than a currency. I'd rather set aside X amount of money each month and invest it than be fully paid through Bitcoin.

I agree with you, I will also continue to choose fiat for salary instead of bitcoin. I like its volatility in investments, but I don't like its volatility affects my daily living expenses. Moreover, it becomes even more pointless to receive salary in bitcoin because we also need to convert to fiat as soon as we receive it because fiat is still the commonly used currency, not bitcoin.
Bitcoin is already an asset, we don't even need to wait for the government to accept bitcoin as an asset or currency, we ourselves have made bitcoin an investment and not a currency. So I doubt who is supporting this idea.

[Jawhead999]

Nothing different, as long as you get paid with a valuable and liquid asset, they're exactly same.

If you get paid with Bitcoin, you can convert it to fiat. If you get paid with fiat, you can convert it to Bitcoin. If you get paid with stock, you can convert it to fiat. The good thing when you get paid with Bitcoin is more private and you have an option to not pay income tax.

[Sayeds56]

In theory, the idea of paying salaries in Bitcoin seems promising , with it potential as a store of value and precious asset. It could also encourage employees to save portion of their earnings in Bitcoin for future appreciation in its value. However in practical there can be many consequences for employers and employees. The primary issue is volatility in Bitcoin price over short periods, this can make it difficult for employees to evaluate their purchase power to buy goods and services and planning their expenses. While employers will also find it difficult to budget and forecast their labor costs.

In summary, this approach can work effectively when Bitcoin is massively regulated and adopted as method of payment, and we will be able to use Bitcoin for everything for our daily transactions.

[Dzwaafu11]

I was of the opinion that the government will not allow fiat to be replaced by Bitcoin .so what is your take on this will it be a positive move on the Bitcoin ecosystem or not

Although it will be a positive move for the bitcoin system if the government pays its civil servants with bitcoin currency, the truth is that where, when, and how is the government going to allow this? You can see that the government cannot get access to people's funds in the bank again, and banks will no longer get used, in my opinion, because everyone is using bitcoin to buy and sell since the government has made it legal tender in the country, and nobody wants to suffer since bitcoin is safer and easier to use without any third party.

However, the fiat already existed before the existence of bitcoin, and citizens have already gotten used to the fiat. I believe it will be very hard to use bitcoin as a means of paying salaries. I don't think even when we say bitcoin has a promising future, this can be done.

Not everyone working under the government has knowledge of Bitcoin and won't accept payment with something they don't know how to use.

Exactly, @Nwada001. There are many people employees under the government who did not even go to school, and yet these people are always paid by their fiat, and they people cannot use bitcoin because bitcoin is a digital currency, and most of these people are not ready to sit down and learn about bitcoin. However, there are people who have never heard anything about bitcoin before, so you can see that introducing bitcoin to this kind of person is a different thing.

[Fivestar4everMVP]

A friend of mine in our discussion today about Bitcoin was insisting that salaries and wages be paid in Bitcoin in some countries.
I was of the opinion that the government will not allow fiat to be replaced by Bitcoin .so what is your take on this will it be a positive move on the Bitcoin ecosystem or not

If governments start paying salaries in bitcoin, that simply means that bitcoin as become legal tender in such a country, that will definitely have a positive impact on the price and adoption of bitcoin as a better alternative to fiat, but then, like you have said, aside countries where bitcoin is already a legal tender like El Salvador and the likes, it will be hard for the government of other countries where bitcoin is yet to be made a legal tender to start paying their workers in bitcoin, a currency they have no control over, its practically and technically impossible.

[crwth]

It would depend on the country if it's pro cryptocurrencies or not, that is for sure. There are a lot of things that could go with Bitcoin if ever it were to happen but I think it's a double-edged sword as well.

A lot of people who are salary earners are going to always convert their money into fiat, hence more selling BUT in order for the company to give them the salary, they have to buy BTC in the first place so it could balance out. The positive thing that can see in this is a lot of people would be in the crypto space and be figuring out if there are things to do with BTC, hence more users.

[Smack That Ace]

Not everyone working under the government has knowledge of Bitcoin and won't accept payment with something they don't know how to use.

Exactly, @Nwada001. There are many people employees under the government who did not even go to school, and yet these people are always paid by their fiat, and they people cannot use bitcoin because bitcoin is a digital currency, and most of these people are not ready to sit down and learn about bitcoin. However, there are people who have never heard anything about bitcoin before, so you can see that introducing bitcoin to this kind of person is a different thing.

If someone has a steady job with a high income and even they are rich, they have no reason to learn about bitcoin. Why do we learn and accept bitcoin? That's because we want privacy, freedom, and most importantly, we want to get out of poverty and become rich. But government employees already have everything they need, so why do they need bitcoin? Not everyone needs bitcoin like we do, we need to be realistic about that.

[WatChe]

Nothing different, as long as you get paid with a valuable and liquid asset, they're exactly same.

If you get paid with Bitcoin, you can convert it to fiat. If you get paid with fiat, you can convert it to Bitcoin. If you get paid with stock, you can convert it to fiat. The good thing when you get paid with Bitcoin is more private and you have an option to not pay income tax.

We meed fiat for daily living and even if you are paid in bitcoin you need fiat to buy stuff for daily living, pay utility bills etc. Bitcoin has its own utilites, we need to stop comparing both. Due to high price volatility of bitcoin its not advisable to get pay in bitcoin. You may convert spare cash to bitcoin for investment purpose. As far as Taxes are concerned, governments are fully aware that they can't control decentralized Bitcoin and will never allow such payment options.