The idea of a cryptocurrency payroll is exciting, but the reality has been somewhat disappointing. While there have been some successes in this field, most payroll crypto have hit roadblocks that prevent them from reaching their full potential. The good news? There’s still hope for crypto payrolls to succeed and you can help make it happen!
The History of Cryptocurrency Payroll
The reason why most cryptocurrency payroll fail is because there is a clear lack of understanding among employers. The goals and purpose of Crypto Payrolls are not widely understood, and the market has not yet matured to the point where it can sustain itself without external support. In this section we will cover why Crypto Payrolls are necessary, how they are different from traditional payrolls, and what the history of crypto payrolls has been.
Technical issues are a significant challenge for crypto payrolls. The technology is still in its early stages of development, testing and use. There are many bugs in the software, which often lead to unexpected outcomes or even crashes.
Cryptocurrency payroll providers need more time to build the necessary infrastructure before they can scale their solutions to large companies with thousands of employees.
While there’s no shortage of companies offering cryptocurrency payrolls, security has been an ongoing concern for both employees and employers. Cryptocurrency payrolls are vulnerable to hacks, data breaches, and phishing scams not to mention the fact that many employees simply don’t trust cryptocurrencies.
You’ve probably heard about the recent spate of cryptocurrency exchange hacks. According to Reuters, hackers stole $40 million from Binance in May 2019, then another $41 million from Bitstamp in October 2018 and these aren’t even the biggest heists on record! You can bet that your employer isn’t going to be happy if their employee’s paychecks get hacked or stolen by a hacker looking for a payday (or just trying their luck).
Another reason why cryptocurrency payroll fail is that of regulations. Regulations are different in every country, and they change over time. Furthermore, some countries don’t have any regulations at all while others have very strict ones.
Most countries have some type of regulation concerning cryptocurrency and its use as a means of payment or even an investment tool. So you need to make sure that whatever solution your company uses complies with these regulations in order to avoid any potential problems later on down the line (e.g., fines from banks).
Solutions for Crypto Payrolls
Use a service that is regulated and compliant. If you want to avoid problems with your cryptocurrency payroll, it’s best to use a provider that has a track record of successful crypto payrolls. Look for providers who have been in business for at least five years and have been servicing clients in the blockchain space for at least three years. The longer they’ve been around, the more likely they will be able to help you make sense of the complex rules surrounding cryptocurrency tax filing.
Make sure your employees are aware of the risks involved with using cryptocurrencies as payment for wages or salaries.
It’s important that staff know up front what could happen if their employer fails to pay them in fiat currency (the legal tender currency used by governments), rather than crypto currency: They could lose everything!
While cryptocurrency payrolls have struggled in the past, there are steps you can take to overcome these challenges.
Use a payroll service that is already established. If a company has been around for awhile and they’ve proven themselves as capable and reliable, then it’s likely they will continue to provide top-notch services. By using an established company, you’ll be able to rest easy knowing your employees will receive their paychecks on time.
Use a well-known payroll service. There are many new startups out there seeking to solve this problem but if they’re not well known or have no track record, then steer clear of them! You don’t want all your employee funds locked up somewhere because the startup went under before paying workers’ salaries for any given month! Companies like PayrollHero (which was acquired by Gusto) or Intuit offer great systems that allow people from all walks of life including those working remotely get paid correctly every time without worrying about where their funds might end up after being paid out by someone else’s system.
Cryptocurrency payrolls are still new, and there are plenty of opportunities to improve them. We’ve outlined some of the biggest issues cryptocurrency payrolls have faced in the past so that you can avoid making those mistakes yourself. If you want help implementing your own payroll or have other questions about cryptocurrency, feel free to reach out.