Is paying salaries in crypto a good idea?

There is no doubt that cryptocurrencies have become a popular alternative to fiat currency transactions. A huge number of people want to use cryptocurrencies in their day to day lives. Also, as a company, you might want to pay salaries in crypto. But the question is, is paying salaries in crypto a good idea?

Well, in this article, we will try to understand the benefits, pros, and cons of paying out salaries in crypto and if it is a better option than paying salaries in bank accounts.

So here we go:

Benefits Of Paying Salaries In Crypto


There are many companies that outsource their work to foreign citizens. For instance, there are many US companies that outsource IT services from countries like India, Poland, Ukraine, and many others. The benefit of doing so is good services at a lower price.

However, the main issue is when it comes to paying salaries or making payments to freelancers. Most online services have a hefty transaction fee. Along with that, you have to pay exchange fees when you are converting one currency to another.

But with crypto, you can put an end to expensive transaction fees. You can purchase cryptocurrencies like BNB or XRP using your local currency and send the funds to your employees at a very cheap fee.

And your employees can withdraw their funds in their local currency. There is no currency exchange fee. Instead, you are only paying the transaction fee, which is 0.00001 XRP for Ripple transactions.


Without any doubt, bank transactions are time consuming. Also, there are certain rules that banks have in place which delays a transaction. For instance, most bank transactions don’t occur on non-business days.

But when it comes to crypto, transactions happen pretty quickly. Cryptocurrencies like BNB fulfills a transaction within seconds or a few minutes.

As you already know, salary payments can take a few days or weeks to clear. But with crypto, you don’t have to wait for a day or two to send money from your bank account to your employee’s bank account. Plus, you can free yourself from any bank transaction charges.


Making transactions with crypto is transparent. As it stores a record of the transaction in the blockchain. This protects both the employee and the company in case of any dispute related to payment.

Another benefit is that if an employee decides to hold on to their cryptocurrency, they might get great returns over a period of time. Or when the market is in a bull run. In case the value of a coin starts to drop, they can use instant crypto swap exchanges to swap their tokens to another crypto token.

Disadvantages of Paying Salaries In Crypto


One of the biggest disadvantages of paying salaries in crypto is the tax. Of course, they do solve the complicated problems and processes that bank accounts, credit cards, and other financial institutes follow. But with crypto, you face newer issues.

One of them is that your employees will still need to pay income tax. Also, in most countries, there are no regulations. In such a case, taxing such earnings through payment gets complicated. Also, many accountants may refuse to work with cryptocurrency payments.

Also, if Bitcoin salaries rise substantially in value after being paid, there is a risk of capital gains tax.


Cryptocurrencies are highly volatile, especially currencies like Bitcoin, Ethereum, Bitcoin Cash, and many others. The value of these coins can drop at any time or rise up.

So in case if you have paid a salary of $1000 to your employee and after paying so the value of it drops by $200, and it stands to $800, your employee will end up losing their money. As a result, most employees are not comfortable with crypto payments.

But luckily, you can still consider paying salaries in stablecoins. As their value depends on a fiat currency like USD. As a result, their value doesn’t fluctuate as much as a cryptocurrency like Bitcoin does.

Difficulty of Use:

You cannot deny the fact that cryptocurrencies are difficult to use. At one side, by paying salaries in crypto, you will help in the adoption of crypto. But for many employees, it will be pretty hard to deal with cryptocurrencies. Since they do have their own set of risks, regulations, and whatnot.

On the other hand, bank accounts are simple to use, and there are no complicated rules and regulations that exist around them. They will have access to their funds even if they forget their bank account’s username or password.

But if an employee forgets or loses their Crypto wallet seed phrase, there is no way to recover their funds.

However, luckily there are many platforms that are putting their efforts into making crypto a mainstream thing, and hopefully, within a few years, we will be more indulged with crypto than we are today.

Is Paying Salaries in Crypto a Good idea?

The answer to this question would depend. It completely depends on what kind of rules and regulations you have about crypto in your region. For instance, in many countries, crypto is being banned. So in such regions paying salaries in crypto is definitely not a good idea.

But if your country has good rules and regulations about crypto, you have an accountant and employees who can deal with crypto. Then there is no harm in paying salaries in Bitcoin or any other cryptocurrencies.

Author: Editorial Team

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