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Sophie Charles

Rise of Cryptocurrencies: Can You Pay Your Employees With It?

Updated: Mar 16, 2023



In short as far as the UK and EU is concerned, no, not yet at least. However, there’s an ever increasing move to the ‘cashless society’, digitisation of all transactions it’s argued leads to greater tax receipts, that’s the theory anyway as it takes away the need also, again in theory, for no more need for individual tax returns, Denmark is the first country in Europe to move away from the concept of personal tax returns.


Cryptocurrencies are a digital money system that allows people to send or receive money globally across the internet. Bitcoin payments are processed through a private network of computers all linked through a shared program. Each transaction is simultaneously recorded in a “blockchain” on each computer that updates and informs all accounts. Cryptocurrencies such as Bitcoin allows for fast, secure and low-cost transactions.


It remains to be seen how paying someone in cryptocurrencies is readily convertible to a cash asset when someone needs to buy something priced in a legacy currency, how do they cater for continual changes in value in relation to that currency.

It seems archaic that it’s still legal to pay someone in notes in coins if they make a reasonable claim as to why yet cryptocurrencies are still illegal.


Michael Clarke

CFO

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