Bitcoin payroll product piloted by Mode and PayEscape
In a further effort to bring bitcoin into the mainstream, Mode Global, a UK-based fintech, has tied up with payroll provider PayEscape to pilot a new payroll product that would help the employees to receive a part of their salary in bitcoin.
This is seen as a way to encourage the users to receive a part of their salaries in bitcoin and it is something that has been discussed by many crypto-based companies before. Some companies are working on making these salaries floating so that the employees would be able to receive the salaries that they have earned till that specific day but all this goes to show how efforts are being made to get people used to working with bitcoin and other cryptos for receiving and sending payments. This Bitcoin Payroll product is a platform where the user can specify how much of his salary needs to be converted into bitcoin and this will then be deposited directly into his bitcoin wallet held at Mode Global.
Ryan Moore, CEO, Mode, said: “By automating the process of converting monthly pay deductions into bitcoin, Mode aims to make it easy, convenient, and accessible for people in the UK to gain exposure to the asset class.”
The employees have to remember that this is naked exposure to the volatility of bitcoin which can swing any way at any point in time. The employees must understand and accept this risk before they seek this product and it remains to be seen how the platforms are going to educate their users about the same. The regulators would also be watching this with a close eye as it is likely that many users may be tempted into taking their salaries in bitcoin but might end up with losses and a lot of emotional stress which they may not be able to deal with. This is where the stablecoins are likely to present a better option for the users as the value would be tied to the fiat currencies but at this time, the companies seem to be reluctant to delve too much into the stablecoins and prefer to go with the popular approach of bitcoin for saving and payment purposes. Whether the mainstream users would be able to digest the risk and volatility is something that we have to wait and see.