Costa Rica Legalizes Employee Salaries Paid by Cryptocurrencies
After fully legalizing it, Costa Rica has permitted companies to pay their employees in cryptocurrencies without prosecution by the government. Albeit not the entire salary, a portion of it can be paid in digital coins. The countries national law state that businesses are allowed to distribute salaries among employees in fiat currency as well as products instead of money. The introduction of cryptocurrencies fits under the national law seeing as how the country permits alternative payment methods with a widespread use.
As news reports have stated recently, Costa Rican employees might soon begin getting partially paid in digital currencies. As part of its national legislation, nothing is standing in the way of the government to implement the new payment solution. The national law dictates that any employee can be paid in the form of products instead of currency if they minimum wage limit is passed by a products price. Named as “quasi-money” as a concept, this includes any payable asset commonly used within the society.
Nassar Abogados, a distinguished law agency saw its own Rolando Perlaza comment on the matter, saying that this new payment method may possibly persist and remain as a commonly accepted service. He states that even though employees can receive crypto, the digital assets will not take over fiat or liquid currency but instead be available as an option.
Furthermore, paying in Bitcoin or any other currency will encourage workers that choose to be paid in crypto as quoted by a local news outlet. As per the national legislation, every employee is protected under the law of Labor. In October of 2017, Costa Rica’s central bank published an official order that cryptocurrencies operate outside the countries financial institutional system. It also warned against potential monetary threats to cryptocurrency users and that cryptocurrencies, in general, would be restricted in their viable uses.
Even after the banks issuing, the nations crypto-environment has been consistently advancing as more investors, sellers, companies and other businesses adopt crypto as a legal tender. The nation has always displayed a welcoming attitude towards the technology and companies based on crypto with even a few BTC ATM’s appearing around the country.
As per the report, Costa Rica is also in favor of supporting digital currency mining given its recyclable sources. Daniel Yépez, a local businessman, said that his company that is based within Costa Rica mines crypto using green energy sources. SH Mining, the company, believes that green energy is a vital factor of any emerging crypto startups and will provide more business within the country.
He adds that cryptocurrencies have made their way to Costa Rica with no intention of leaving, but instead a welcoming adoption by the country.