Think Twice Before Agreeing to Cryptocurrency Salary Payments

Neil Dennis

As an increasing number of employees choose to receive portions of their salary in cryptocurrency, a risky strategy given the volatility of the digital asset classes.

Companies that deal in cryptoassets are prominent among those offering such payment options to their employees, a scenario the Financial Times has compared to the practice of payment in company scrip.

Outlawed in Britain by the Truck Act in 1887, scrip was issued by companies as tokenized payments that could often only be spent as rent on company-owned houses and for food and goods in company-owned stores. Such form of payment would permanently shackle their employees to the company and ensure that all salaries would be spent back with the company.

Given the Choice

Indeed, it would be a good comparison if modern companies were forcing their employees to accept part payment in cryptocurrency. 

In the UK, the 1887 Act was superseded by the Employment Rights Act of 1996, which allows employees to choose how they would like to be remunerated. 

Crypto-enthusiasts and those willing to take on extra risk appear to be accepting such offers and this has prompted tax authorities around the world - including New Zealand last week - to respond in order to ensure tax loopholes are not exploited.

It remains an obligation upon employers, however, that any form of payment other than 'coin of the realm' is purely optional. 

VC Firm Andreessen Horowitz Unveils Who'll Teach at Its Free Crypto Startup School

Venture capital firm Andreessen Horowitz (a16z) has unveiled who’ll be teaching at its free Crypto Startup School, and instructors include Coinbase’s CEO Brian Armstrong, Calibra’s head of strategy, and some of its own general partners.

According to a blog post, the list of instructors will also include Coinbase’s chief legal officer Brian Brooks, and its ex-chief technology officer Balaji Srinivasan. From Andreessen Horowitz various general partners will be instructing in the course, as well the founder of Compound Robert Leshner, and the founder of Parity Jutta Steiner.

The post, written by program manager at the Crypto Startup School Jesse Walden, details:

They will share lessons they’ve learned, early best practices, new project ideas, and important considerations to help aspiring entrepreneurs and builders get started.

The school’s program is set to start on February 21 of next year, and will end on April 3. The free seven-week course was announced last month, and as reported the course’s lessons will only be for those whose applications get accepted. Later on, however, a16z plans to make videos of these lectures as well as course materials available to the public.

Some of the main topics that are to be addressed at the Crypto Startup School include cryptocurrency business models, fundraising strategies, regulatory landscape, an overview of application development tools, and more.

Featured image via Pexels.