For employers, this new form of digital payments offers lots of opportunities to make transactions faster, cheaper and safer.
It takes a lot of effort to change the status quo, the way things have always been. But that’s what technology is forcing us to do. Change the way we do everything, from shopping to interacting, banking to parking, dating to paying for things. Sometimes new technology improves our working and social lives, other times it becomes cumbersome and annoying. Disruption can be good and bad.
So where do you stand on blockchain and cryptocurrency? (cryptocurrency has its roots in blockchain). There is a temptation to ignore these new two new technological advances in the hope they are just fads. But it looks like they are here to stay as their presence grows. Earlier this year, the New Zealand government became the first country in the world to allow employers to pay staff via cryptocurrency. That was quite an endorsement for the likes of Bitcoin, Ethereum, Ripple and Litecoin.
And following the Singapore Fintech Festival 2019 in November, it was revealed the Monetary Authority of Singapore (MAS) is working with Singapore’s financial services industry to develop a new blockchain-based cross-border digital payment system. Sounds impressive, but what does it mean for employers?
Quite a lot actually, but perhaps the biggest impact could be for paying staff. This is particular relevant if you regularly pay salaries to staff based overseas. While the New Zealand government gave its seal of approval to compensate staff with cryptocurrencies, others are sure to follow.
Not only will employers save money (by bypassing traditional banks and financial institutions), but blockchain can also speed up transaction while making them safer, given the multiple layers of encryption. Having blockchain at its core, any payments system will also be more transparent…