Aliant Payments, a US-based financial technology company that provides merchant services and payment processing services, will pay its employees’ compensation package in 2 cryptocurrencies: Bitcoin and Litecoin.
Aliant’s CEO Eric Brown says, “The fintech industry is growing and changing rapidly, and This is a way for our employees to be a part of Aliant’s involvement in this shift to digital currency.”
In 2017, Aliant had launched its CryptoBucks service, which allowed merchants to make payments in cryptocurrency. In 2018 it launched a fully regulatory compliant, domestic cryptocurrency processing system to convert cryptocurrency to USD. The conversion would be done immediately, and the next day, payouts would be made to the merchants. This system avoided the volatility attached to cryptocurrency, thus, encouraging more merchants to adopt it.
The company hopes that once their staff receives cryptocurrency, they will begin using it for making small routine payments. They will get more accustomed to handling it, and this will improve their interaction with the company’s clients who wish to deal with cryptocurrency.
Every company pays its employees a salary from the revenue it earns. If a company earns even a portion of its revenue in digital currency but has to pay its staff in fiat currency, then the volatility of cryptocurrency becomes a factor. Because the value of cryptocurrency can change within hours, thus, if its value has dropped, the company would have to shell out more money for converting the same amount of digital money into fiat at the end of the month. Conversely, if the value of cryptocurrency increases, the company would have to shell out less for the conversion to fiat. Thus, there will be uncertainty about staff salaries until the very end of the month.
By paying the staff in digital currency, the company ends this volatility. The staff can decide whether to convert the cryptocurrency into fiat or not. With mainstreaming of cryptocurrency, more and more daily routine transactions will be done through cryptocurrency without conversion to fiat. Employees can indulge in online gambling and betting using the cryptocurrency portion of their salaries or can spend it for more mundane payments like eating at a restaurant, having a cup of coffee, etc. Thus, the whole question of the conversion of digital money to fiat would become redundant.