Japanese Firm to offer Part-Salary in Bitcoin
In what could prove to be a milestone in the acceptance of crypto-currency in widespread use, a multi-billion dollar worth Japanese organisation is offering its employees the option of receiving a part of their salary in Bitcoin, says a report.
GMO Internet, a Japanese web hosting company, announced last week that beginning February, employees at the organisation can choose to accept between 10,000 yen ($88) and 1,00,000 yen ($890) of their remuneration in the most valuable and widely used crypto-currency known to man. It is important to note that this will be an entirely optional proposition, but will be extended to the company’s entire 4,000+ workforce. Reportedly, there is an incentive for those who will be a part of the new payroll system: a bonus of 10% of the selected Bitcoin amount. The company said that since the payment will be mutually based, and deducted from the regular yen salary of the employee, it will not be breaking any regulation, which stipulates the payment of salary in yen.
The purpose is said to be making employees familiar with crypto-currency, as the organisation ramps up the services it offers in the domain. A company spokerperson has been quoted saying, “Employees can receive salaries by Bitcoin if they want to... We hope to improve our own literacy of virtual currency by actually using it.” Earlier this year, GMO Internet started a Bitcoin trading and exchange business, and come January, will also add a Bitcoin mining business to the services they provide. The company has announced other innovative and unique plans to trade in the Bitcoin and cloud mining business, and also improve efficiency and performance of the processes doing the same.
The development comes at a time when governments, regulators and monetary institutions are cautioning against trading in crypto-currency, indicating to its volatility in value and inflated returns. Experts see this as the growth of a bubble which might deflate without warning. Since the beginning of the year, when the price of a single Bitcoin was less than $1,000, the currency has recently touched a high of nearly $18,000. It is expected to breach the $20,000 mark by the end of the year. The Indian government clarified that it doesn’t recognise Bitcoin as legal tender, and also recently served notices to lakhs of individuals who traded in the currency.
People Matters had previously reported that crypto-currency is gaining acceptance more prominently all over the world. While it is difficult to predict the future of the currency, as long as people choose to trade in the currency as a form of investment, rather than using it as a means to spend, its acceptance will be limited. It could be said that GMO Internet is playing a gamble, and those who choose to bet might be handsomely rewarded or repent their decision.