Bitcoin: Should You Start Accepting A Salary In Bitcoin? – Tech Tribune France

We are in 2022 and the world has become much smaller. Teams are global today and people choose to work from anywhere in the world. When it comes to the creator economy, freelancers support projects from different continents and, due to the ease of transactions, consider cryptocurrency as a mode of payment.

Now the big question is, should you get your salary in the form of crypto? Bitcoin has become extremely popular over the past few years, with countries like El Salvador adopting it as legal tender. This has pushed many businesses and individuals to use cryptocurrencies as alternatives to traditional cash, as they are free from heavy fees and regulations, complex taxation, etc. However, if you are considering considering crypto as an alternative to traditional cash as your paycheck, here are some important things you will need to assess.

Crypto as legal tender

India received clarification on cryptocurrency this year, when the government clarified that it may have value but will not be legal tender (much like commodities such as gold and diamonds which have their own value, but which are not legal tender).

Other than El Salvador, which in September last year adopted Bitcoin as legal tender, no other country has officially made cryptocurrency legal tender.

India is working on legislation to regulate cryptocurrencies, but a public draft has yet to be released.

Meanwhile, the RBI has planned to launch the “Digital Rupee” – a central bank-backed digital currency, which will start circulating in the next financial year to usher in a cheaper and more efficient currency management system.

Bitcoin in India and the government

Unlike traditional money created by the central bank, the Indian rupee derives its value from the collateral of the government banking system, bitcoins have no intrinsic value and are only valued by market forces of supply and demand. demand. Thus, the value of a cryptocurrency like Bitcoin varies in volatility.

What will it take to pull your crypto salaries?

Getting paid in Bitcoin or any crypto for that matter requires creating a free account on cryptocurrency exchanges. Crypto payment recipients can then store their bitcoins in digital wallets. They can sell their tokens on the legal tender of the crypto exchange.

Sometimes Bitcoin’s volatility is seen as a potential benefit to the recipient, as it may increase in the future. But it’s not a rosy picture. Volatility can be the main downside to accepting Bitcoin for payment.

A business or individual could lose a substantial portion of their payment within days or even hours if the value of the currency suddenly drops. Each country also taxes Bitcoin very differently.

The issue of taxation
After April 1, 2022, the Indian government decided to levy a 30% tax on income from digital assets, including cryptocurrency.

India’s crypto market grew by 641% in the year to June 2021, according to an October report by industry research firm Chainalysis, but instead of regulating it through fair means, the government levied a 30% tax, making the Twitter hashtags #reducecryptotax & #IndiaWantsCrypto trend on the social media platform.

As the country keeps pace with the global shift towards virtual financial instruments, the budget also announced that India’s central bank will launch the “digital rupee” in the next fiscal year.

What happens afterwards?

The speed and freedom Bitcoin transactions provide to make them appealing to people doing business internationally. However, the volatility of cryptocurrency and the changing regulatory environment mean that it is much riskier to accept it compared to legal tender currencies. Despite the risks, several international celebrities have made Bitcoin their preferred method of payment. Global icons like Snoop Dogg, Kanye West, Sia and Mariah Carey have already asked organizers to be paid in Bitcoin while several others are following suit, showing global acceptance of digital currency. The only thing to look forward to as we wait for more clarity and acceptance from the Indian government is the impact of this on our daily lives and a future where your monthly salary is in your crypto wallet, not your Bank accounts.

(The author is CEO and co-founder of Defy.)

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Bitcoin: Should You Start Accepting A Salary In Bitcoin? – Tech Tribune France

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