Rising Crypto Salary Demands Confuses Japanese Authorities
The Tokyo Metropolitan Government is pushing for the suspension of the Labour Standard Act. Also pushing for the deregulation are some venture firms. The NSSZ has also requested a change in regulations. In a quick reaction, the country’s labor ministry has expressed confusion over the latest development.
Under labor laws that have been in existence for seven decades, the government has been paying salaries in cash. Local media reports that the growth of digital currencies and removal of money from banks might not be of any significance.
Early this year, Japanese authorities revealed that there were plans to hold a national strategic advisory council. The sessions would be used in deliberating on how to make payments through smartphones. The phones will only operate in specified zones and would have prepaid card features.
Authorities were seeking to improve convenience by sending salaries onto a phone. The smartphones will also be used as wallets. Additionally, the idea was meant to assist foreign employees who might experience challenges trying to open accounts with local banks.
Traditionally, salaries have been paid in cash as required by the law. Some ministries are said to be looking for ways of creating permanent means of transferring salaries even when an operator is declared bankrupt.
While speaking to the press last month, Hiroshi Kajiyama a minister stated NSSZ has received great ideas on how to pay salaries. The proposals came from reputable firms that build software that remit salaries to smartphones. Such companies include Doreming Holding. According to the firm, its system can initiate payments for foreigners and support consumption.
The government of Tokyo gave its propositions during the NSSZ forum where the term payroll card was introduced. The card is already in operation within the United States and it is expected to reach over 10 million individuals by next year. With the card, companies can pay the salaries without using banks. The high uptake in the US is due to the employment of many contractors by major companies. A number of African countries are also embracing the cards.
Recently, Japan has started deploying workers from abroad due to insufficient manpower. However, conditions for opening bank accounts are strict for foreigners. One needs to have stayed in the Asian country for over 12 months in order to get access to a bank account. In this case, the payroll card is the only option.Such a concept will steer the state of cashlessness. Despite the potential, the ministry of labor which is in charge is observing caution.