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New Zealand already allows to pay employees salaries in Bitcoin

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New Zealand financial authorities have passed a law that allows companies to pay their workers with Bitcoin or other cryptocurrencies. It is a pioneering action in the world but that is subject to some regulation.

The law mandates that payments must be made in cryptocurrencies that can be converted into real money in an exchange. This means that the cryptocurrency used is a simple substitute for fiat money, which would prevent companies from using little-known tokens or new and dubious cryptocurrencies.

This undoubtedly has some advantages. For example, if a worker is destined outside the country, he can probably find ways to move his cryptocurrencies without any tax. In addition, even if it is a fixed amount of real money, cryptocurrencies can increase their value overnight. Of course, this also works in the opposite direction. Suppose a worker receives a salary of 1,000 dollars in Bitcoin. At the time of charging, the price of the BTC is indifferent, since the employee will receive 1,000 dollars regardless of how many BTC they are equivalent to. But if the BTC decreases the next day, the worker will have lost money.

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Companies can only use this payment method with their hired workers. Payments have to be made for a fixed value in real money which means that the value equivalent to your salary will be paid in cryptocurrencies.

The law will apply after September 1 of this year and will be active for a period of three years. This is an important step to implement cryptocurrencies in society as Peer-to-Peer Electronic Cash System.

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