Dubai approves bitcoin for salary payment

[kentrolla]

Dubai is one of the seven Emirates of United Arab Emirates not an independent country but it's financial hub of UAE, it's indeed a good news for crypto enthusiasts but to be more practical I don't think this would be feasible for everyone and a hybrid mode will be better and that too I don't know how the companies will manage their finances because their would be fluctuations in the price of Bitcoin and if it's bullish and by the time employees gets it to their wallet the value decreases then who would be responsible to compensate? Because companies would transfer it just like how the signature campaigns pay by considering the current price and sharing the BTC worth the amount of salary or payout.

I think we need to understand that Bitcoin is an alternative to fiat it cannot replace fiat.

[SickDayIn]

Dubai is definitely positioning themselves to be a cryptocurrency hub for the world, and a lot of web3 startups are finding Dubai as the perfect location to start and head their businesses. A lot of these startups will be seeking to pay their staff not only in Bitcoin but also in other cryptocurrencies and tokens. I guess another reason Dubai is comfortable with employees receiving income in crypto is because th y don't have personal income tax.

[kro55]

That's a great news for citizens of Dubai as this would enable them to invest in bitcoin directly.
Although Dubai has approved bitcoin for salary payments it might be difficult to find companies which are willing to pay salaries in bitcoin.
Not all companies are interested in paying bitcoins but still it's a good move from the Dubai government.

Although I am also not optimistic that many companies or employees will accept bitcoin as their salary due to disadvantages like transaction fees or bitcoin's volatility. But it's too early to draw conclusions, they've just started implementing it and things take time.

I believe they must have had reasons and plans before making this decision because they also understand the disadvantages of bitcoin like us. But they still decided to do it, which means they had a plan for what they did, not just a spur-of-the-moment decision. Give them time and see what happens.

[dzungmobile]

Although I am also not optimistic that many companies or employees will accept bitcoin as their salary due to disadvantages like transaction fees or bitcoin's volatility. But it's too early to draw conclusions, they've just started implementing it and things take time.

It's risky and challenging to receive 100% of salary in Bitcoin because of things you said, volatility, transaction fee and possible loss during holding time. Nevertheless, it is more acceptable to receive like 50% of less or more but not 100% of salary, and have some % of salary in cash or fiat currency that is ready to use anytime and won't be affected by Bitcoin price or mempool congestion.

If I have good salary and I only need to use 30% or 50% of my salary for family spending, I will be happy to receive the rest directly in bitcoin and don't have to pay fee to purchase bitcoin on any platform, then pay fee for withdrawal.

[rodskee]

Have just saw this news yesterday( i might be late in checking lol) but this made me believe that this is also the reason why we are having Bullish market now .

Dubai  as one of the richest country? this will bring best result to the whole market.

Dubai is definitely positioning themselves to be a cryptocurrency hub for the world, and a lot of web3 startups are finding Dubai as the perfect location to start and head their businesses. A lot of these startups will be seeking to pay their staff not only in Bitcoin but also in other cryptocurrencies and tokens. I guess another reason Dubai is comfortable with employees receiving income in crypto is because th y don't have personal income tax.

and this brings more popularity to the whole crypto market and may in the whole world.

[ultrloa]

Although I am also not optimistic that many companies or employees will accept bitcoin as their salary due to disadvantages like transaction fees or bitcoin's volatility. But it's too early to draw conclusions, they've just started implementing it and things take time.

It's risky and challenging to receive 100% of salary in Bitcoin because of things you said, volatility, transaction fee and possible loss during holding time. Nevertheless, it is more acceptable to receive like 50% of less or more but not 100% of salary, and have some % of salary in cash or fiat currency that is ready to use anytime and won't be affected by Bitcoin price or mempool congestion.

If I have good salary and I only need to use 30% or 50% of my salary for family spending, I will be happy to receive the rest directly in bitcoin and don't have to pay fee to purchase bitcoin on any platform, then pay fee for withdrawal.

Yeah risky for part of employee that doesn't have any knowledge about bitcoin. Also even if I know bitcoin provably that I don't want to receive this currency since for me its not good to deal with it especially if this is hard earned money since volatility is questionable and we might just get disappointed with the result. 50% still bit off since its like we don't have a right to choose on what currency we like to receive.

Maybe best to receive fiat and they just let people decide if they want to buy bitcoin or like what other say bitcoin is just optional if people want to receive this coin when they need it. The reason why I want to receive fiat since I want to take care first the need of my family also the bills to pay. Investment is just my third priority that's why its always good to receive fiat in this matter.

[Marvell1]

Have just saw this news yesterday( i might be late in checking lol) but this made me believe that this is also the reason why we are having Bullish market now .

Dubai  as one of the richest country? this will bring best result to the whole market.

I don't think this has anything to do with the recent bitcoin price surge as the regulation was just passed and hasn't even been implemented yet. We need to wait and see how the Dubai government will implement this idea, and how they can convince people to accept receiving their salary in bitcoin, because getting paid in bitcoin has some disadvantages as people have mentioned above.
If this news came from the US or China I would agree with you but Dubai is not a country that has a big influence on the market.
As for why bitcoin is rising, I think the recent Fed meeting was the catalyst as they are planning to cut interest rates next month. Anyway, this news is quite exciting, any country that legalizes bitcoin and its use is good news.

[benalexis12]

That's a great news for citizens of Dubai as this would enable them to invest in bitcoin directly.
Although Dubai has approved bitcoin for salary payments it might be difficult to find companies which are willing to pay salaries in bitcoin.
Not all companies are interested in paying bitcoins but still it's a good move from the Dubai government.

It is true that many companies may not want to enter into clear agreement with their employees to pay a part or all of their salaries in crypto, maybe due to transaction fees and some other reasons. However, the only good thing about this news is that it is possible for employers and employees to enter into a valid agreement to receive their salary in crypto, so it is a good development. In the coming weeks and months, we would see how popular this is going to be.

Yes, it will be a good development, but the question will also be because here it will also be easy for the employees to accept their employers' will for this. Because it's like their government is giving orders to their subjects.

But always, however, if it is an order from the government, even if the employers don't want to, there is nothing they can do, in my opinion. Although, for us crypto enthusiasts, this is actually very good news.

[pawanjain]

That's a great news for citizens of Dubai as this would enable them to invest in bitcoin directly.
Although Dubai has approved bitcoin for salary payments it might be difficult to find companies which are willing to pay salaries in bitcoin.
Not all companies are interested in paying bitcoins but still it's a good move from the Dubai government.

It is true that many companies may not want to enter into clear agreement with their employees to pay a part or all of their salaries in crypto, maybe due to transaction fees and some other reasons. However, the only good thing about this news is that it is possible for employers and employees to enter into a valid agreement to receive their salary in crypto, so it is a good development. In the coming weeks and months, we would see how popular this is going to be.

Yes, that is true. Although we are seeing this already in forums like upwork and this forum itself but all of this is unofficial.
With Dubai legalizing the process of salaries in bitcoin, it would be clearly official and may be this would increase the usage and accpetance of bitcoin.
We have seen how countries follow one another when it comes to bitcoin and so may be other countries start legalizing salaries in bitcoin too.

[Nrcewker]

This is just the first stage cleared by the court. It will take more time to make it official in Dubai. But definitely this is positive news, and all the investors from Dubai will be ready to make the advance move to make the most profit from the cryptocurrencies. As there is no heavy law and tax on trading cryptocurrencies or forex, hence Dubai is ideal for this type of investment. Now that this salary thing gets legal, I am sure more Bitcoin investors will completely shift to Dubai to make profits and to pay less in tax. Definitely good news for the Bitcoin community.

[re-start]

Dubai is one of the countries that always cares about its people and has become a popular tourist destination with many facilities. Paying employees with bitcoins and accepting bitcoins in Dubai can provide great advantages for both citizens and tourists because there is no need to convert dollars to dirhams, and maybe in the near future stores and hotels in Dubai will also accept bitcoin as a payment method which is great.

[Obari]

I read about it this morning. Dubai is becoming a hub for Bitcoin adoption, which is great since it's a popular tourist destination. However, I have one concern. Due to Bitcoin's volatility, many people might hesitate to receive their salaries in Bitcoin, as they want to preserve the value of their money in the long term. This is especially true for those who are new to cryptocurrency. If receiving salaries in Bitcoin is optional, not mandatory, it will be a step in the right direction.

I don’t even know why they were slow on accepting this and I was shocked with their rejection last year and I’m glad they’re already seeing the light.
One thing is certain, if payments are made in cryptocurrency (Any agreed coin by the employer and his employees ) people will definitely adjust to it’s volatility and rather learn how to make it worth it at the long run, and just like the cases with signature campaigns, payments are mostly made in bitcoin and even persons who were new to it, still accepted it and already adjusting towards it.

It’s a good news indeed seeing dubia with this move and I’m sure some other countries will do same

[Natalim]

That's a great news for citizens of Dubai as this would enable them to invest in bitcoin directly.
Although Dubai has approved bitcoin for salary payments it might be difficult to find companies which are willing to pay salaries in bitcoin.
Not all companies are interested in paying bitcoins but still it's a good move from the Dubai government.

It is true that many companies may not want to enter into clear agreement with their employees to pay a part or all of their salaries in crypto, maybe due to transaction fees and some other reasons. However, the only good thing about this news is that it is possible for employers and employees to enter into a valid agreement to receive their salary in crypto, so it is a good development. In the coming weeks and months, we would see how popular this is going to be.

True. This could bring a lot of advantages to those people who are now exposed to crypto specifically bitcoin because they can start to study bitcoin if they want so they will gain clear understanding about bitcoin. And if lucky enough, both employer and its employees will agree about bitcoin having as a salary payment, so they can use it for their future investment or just simply as a current when bitcoin becomes a legal tender in their country.

[pawel7777]

That's a step that further legitimises Bitcoin on the global stage.
If I'm reading this right, employees would be able to receive their salaries in bitcoins (or other cryptocurrencies) but the employment contracts and the value of payments would likely still be expressed in fiat currency.
I don't think this will have any material impact on BTC's price, as I don't think there will be a large number of employees opting for such payments (given they could just purchase crypto on their own) but still a good news.

[Nothingtodo]

Dubai Paying Salaries in Bitcoins may have an important impact for Bitcoins but in Dubai it is very likely that not all salaries will be paid in Bitcoins but partial payments will be made in Bitcoins.
However, accepting payments through Bitcoin will not help in the economic development of countries where bank salary transactions are conducted.  Especially in my country Bangladesh, all the remittances that come through the bank will now be exchanged through Bitcoin, in this case the government will not receive the remittance.

[kro55]

Although I am also not optimistic that many companies or employees will accept bitcoin as their salary due to disadvantages like transaction fees or bitcoin's volatility. But it's too early to draw conclusions, they've just started implementing it and things take time.

It's risky and challenging to receive 100% of salary in Bitcoin because of things you said, volatility, transaction fee and possible loss during holding time. Nevertheless, it is more acceptable to receive like 50% of less or more but not 100% of salary, and have some % of salary in cash or fiat currency that is ready to use anytime and won't be affected by Bitcoin price or mempool congestion.

If I have good salary and I only need to use 30% or 50% of my salary for family spending, I will be happy to receive the rest directly in bitcoin and don't have to pay fee to purchase bitcoin on any platform, then pay fee for withdrawal.

But receiving 50-70% of your salary in bitcoin also has a disadvantage that you need to consider, which is that you will not be able to actively buy bitcoin at the price you want. I mean, would you be happy to get paid when bitcoin was at $73k, and then bitcoin dropped to $50k? Meanwhile, those who receive 100% of their salary in fiat would have the advantage of buying bitcoin at $50k.


Of course, you will have to accept that because there is no other way and it doesn't matter much because you consider it a long term investment. But if this happens many times, it will be a very uncomfortable and inconvenient feeling.



Overall, everything has its pros and cons and it will depend on each person's choice.

[Gallar]

~Snip

This news will certainly have a very good impact on the progress of cryptocurrencies, especially bitcoin. Because as we know, the UAE is a very large country and also very advanced in various fields. So the UAE pays salaries in the form of cryptocurrency or bitcoin, of course this will have a very positive impact on the progress of the bitcoin/crypto world. Because of course in the UAE there will definitely be more and more people who have bitcoin or other cryptocurrencies and this will of course have a big influence on the increase in bitcoin/crypto prices. But even so, we don't know for sure how the people there will respond. Because of course when proposing big changes like this, there will definitely be many parties who disagree. As is the case in El Salvador, when bitcoin was legalized as a means of transaction there, quite a few citizens opposed the decision. So I don't think the UAE will be too different from El Salvador. Perhaps this will be the toughest challenge for the UAE currently. Because of course not all workers in Dubai want to be paid their salaries in bitcoin or cryptocurrency. But fortunately, people in the UAE definitely understand more about technology, so with this we can be sure that the people who oppose this decision are most likely only a minority.

[Samlucky O]

I read about it this morning. Dubai is becoming a hub for Bitcoin adoption, which is great since it's a popular tourist destination. However, I have one concern. Due to Bitcoin's volatility, many people might hesitate to receive their salaries in Bitcoin, as they want to preserve the value of their money in the long term. This is especially true for those who are new to cryptocurrency. If receiving salaries in Bitcoin is optional, not mandatory, it will be a step in the right direction.

Accepting Bitcoin or other crypto as salaries will be based on agreement between the employer and employee. Even the case that led to this law was about paying salaries both fiat and a token called EcoWatt. Based on the contract, the worker was meant to receive a salary in fiat alongside 5,250 EcoWatt tokens. So, I think accepting crypto as salaries will be optional.

For me I think from the beginning it may be optional but as time goes on it will become normal. Just like salary was first paid in cash when there where no banking system and  people gradually adopted banking system later when they knew the importance/ advantage of banks over fiat. so shall most people who are not well knowledgeable about cryptocurrency or bitcoin and how the payment system works, will gradually understand the importance and fully adop it. It's just a matter of time. I believe this great idea will increase the adoption of bitcoin. This is really a great news to the Bitcoin community.

[aoluain]

Although I am also not optimistic that many companies or employees will accept bitcoin as their salary due to disadvantages like transaction fees or bitcoin's volatility. But it's too early to draw conclusions, they've just started implementing it and things take time.

It's risky and challenging to receive 100% of salary in Bitcoin because of things you said, volatility, transaction fee and possible loss during holding time. Nevertheless, it is more acceptable to receive like 50% of less or more but not 100% of salary, and have some % of salary in cash or fiat currency that is ready to use anytime and won't be affected by Bitcoin price or mempool congestion.

If I have good salary and I only need to use 30% or 50% of my salary for family spending, I will be happy to receive the rest directly in bitcoin and don't have to pay fee to purchase bitcoin on any platform, then pay fee for withdrawal.

Yeah risky for part of employee that doesn't have any knowledge about bitcoin. Also even if I know bitcoin provably that I don't want to receive this currency since for me its not good to deal with it especially if this is hard earned money since volatility is questionable and we might just get disappointed with the result. 50% still bit off since its like we don't have a right to choose on what currency we like to receive.

Maybe best to receive fiat and they just let people decide if they want to buy bitcoin or like what other say bitcoin is just optional if people want to receive this coin when they need it. The reason why I want to receive fiat since I want to take care first the need of my family also the bills to pay. Investment is just my third priority that's why its always good to receive fiat in this matter.

The best scenario would be for an employee to choose if they want to be paid this way, it
shouldnt be compulsory. Also If anyone opts into this they should have the right to choose
what crypto to be paid in - not just a $hit coin like in the report "EcoWatt".

I wouls like to hope that anyone opting for this would realise the benefit of getting partly
paid in Bitcoin, and have a medium to long term outlook on those payments and indeed
see it as a DCA strategy as someone already pointed out.

I think its a definitely a better option than for example taking some of your FIAT wages and
saving a portion every week in a bank!

[Smack That Ace]

The best scenario would be for an employee to choose if they want to be paid this way, it
shouldnt be compulsory. Also If anyone opts into this they should have the right to choose
what crypto to be paid in - not just a $hit coin like in the report "EcoWatt".

This is definitely an option as bitcoin is not a major currency or payment method in Dubai, if it becomes mandatory, the government will immediately face strong opposition from the people.

I wouls like to hope that anyone opting for this would realise the benefit of getting partly
paid in Bitcoin, and have a medium to long term outlook on those payments and indeed
see it as a DCA strategy as someone already pointed out.

Of course, anyone who intends to receive part of their salary in bitcoin or cryptocurrencies, they certainly plan to hold them for the long term. If they are not investors or do not intend to invest long term in bitcoin, they will have no reason to make this choice.

I think its a definitely a better option than for example taking some of your FIAT wages and
saving a portion every week in a bank!

But you can also get paid in fiat and then base your monthly spending plan on investing in bitcoin whenever you want. As kro55 said: it will be even better because we will be more proactive in choosing the right time to buy bitcoin. If we know how to analyze the market, it is clear that owning fiat money is slightly more beneficial than defaulting to receive salary in bitcoin.