Time to pay your employees some Bitcoin? Over two-thirds of enthusiasts would prefer wages in cryptocurrency
Friday, September 14, 2018/
In some news likely to make payroll officers everywhere shudder in despair, a survey by Australian blockchain human resources company Chronobank has found the majority of cryptocurrency fans would prefer their wages in Bitcoin over regular currency.
The survey fielded responses from 445 crypto enthusiasts from Australia, the US and Russia, asking them how they’d like to see cryptocurrencies such as Bitcoin and Ethereum used when it comes to earning salaries and real-world payments. This included Chronobank’s own TIME token, which is part of the company’s blockchain-ified labour hire platform LabourX.
According to CCN, 66% of respondents said they would be willing to receive wages in cryptocurrency, and a higher 83% of respondents said they would be keen to receive any bonus payments in crypto.
But those payroll officers can breathe a sigh of relief, as just 30% of respondents said they thought their country of residence would ever support paying wages in crypto assets.
In a statement, Chronobank founder Sergei Sergeinko said most respondents were lacking sufficient information from their countries about potential support for crypto wages.
“Even though there are ongoing changes in the legislation of different countries in the field of cryptocurrency, audiences are still not adequately informed about the innovations. Almost half of the respondents do not have enough information on whether salary payments in cryptocurrencies in their countries are allowed,” he said.
The survey also showed half of the respondents thought receiving their wages via crypto would help them spend less and save more. Additionally, a similar two-thirds said they’d prefer an employer who had the option of paying via crypto.
“Most revealing was that 72% of those surveyed said they would prefer an employer who has the salary payment option in the cryptocurrency when choosing their next place of employment. These results suggest that employers need to get up to speed with crypto sooner rather than later,” Sergeinko said.
However, with all respondents of the survey already enthusiastic about crypto, these results are hardly surprising. A different survey in the UK by payments company Sage found a starkly different result, with barely one-third of respondents (31%) saying they’d be keen on a part-Bitcoin paycheck.
Of the 1,000 respondents, just 15% said they’d take their entire paycheck in cryptocurrency, and 75% of male respondents were keen on the idea compared to only 25% of women. So when it comes to the broader workforce, traditional payment methods look like they still win out.
Crypto enthusiasts not-so-enthusiastic about tax
Along with asking about crypto wages, Chronobank’s survey also asked respondents if they’d be ready to pay taxes on earnings in cryptocurrency — an intriguing question as by and large, paying taxes isn’t really an optional thing.
Of the respondents, 52% said they were ready to pay the taxman, however, only 30% of Russian respondents said they were, compared to 65% of US respondents.
In Australia, digital assets such as Bitcoin and Ethereum are taxed as a property and as an asset for capital gains tax (CGT) purposes. This means any exchanging or trading of digital assets is classified as a CGT event, and is taxed at your income tax rate.
Earlier this year, the Australian Taxation Office said it would be specifically cracking down on cryptocurrency investors for the 2017-18 financial year.
“If you receive Bitcoin for goods or services you provide as part of your business, you will need to record the value in Australian dollars as part of your ordinary income. This is the same process as receiving non-cash consideration under a barter transaction,” the tax office said.
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