Bitwage offers employees a way of receiving wages paid in cryptocurrency but without unpredictability.
Company clients can now use the Bitwage platform in order to pay their workers using USD coin (USDC) stablecoin. It is linked to the price of the U.S. dollar. On the other hand, wage earners or freelancers can also sign up to receive their wages from employers in the coin. Bitwage announced it Wednesday.
The movement takes place during global markets crisis. In which it is a result of uncertainty from coronavirus-affected communities. Furthermore, many national currencies have lost against the dollar.
What is USDC?
It is a fiat-collateralized stablecoin. In October, the CENTRE consortium launched USDC. It comprises a partnership between U.S.-based crypto exchange Coinbase and P2P payments fintech firm Circle. They formed the consortium in order to create price-stable network protocols and crypto-assets.
Stablecoins for Payment
Bitwage has been operating crypto-related wage activity since 2014. Thus the capability to pay employees in cryptocurrency is not a foreign feat. Aside from bitcoin cash (BCH) and bitcoin (BTC), it also began providing payments in ether (ETH) last June. Freelancers and employees can pick a share distribution of their payments in fiat or crypto.
Utilizing stablecoins for payments is a new but fast-developing feature. They eradicate the threat to wage earners’ salaries from the unpredictable movements of cryptocurrencies. It means workers won’t have to worry about losing a percentage when their funds have been arrived and been exchanged.
For instance, the Venezuelan bolivar has significantly depreciated since June 2019 and is down by more than 3000% against the dollar. It opens up the potential for USD-backed stable coins in providing more stable ground for communities.
Jonathan Chester's statement on stablecoin:
“During our testing, we have seen a lot of interest in the Latin American communities around stable coin wages. We are excited to see how this will improve the lives of communities with struggling financial systems around the world,” Jonathan Chester, Bitwage CEO, stated.
Posted from my blog with SteemPress : https://whaleagent.club/crypto-payroll-startup-bitwage-helps-earners-beat-unpredictability-with-stablecoin-payments/