New Zealand to allow employers to pay salaries using cryptocurrency
Employers in New Zealand will soon be able to pay salaries using cryptocurrency in a ground-breaking move. Starting on September 1, a cryptocurrency such as Bitcoin can be used instead of NZ dollars for workers’ paychecks. The condition is that the preferred cryptocurrency needs to be pegged to a standard currency and directly convertible into a normal form of payment.
Cryptocurrencies are considered by many to be volatile investments. For example, Bitcoin is down around 40% from its December 2017 high. But this latest move by the New Zealand government will give new legitimacy to digital currencies.
Companies paying workers in cryptocurrency will be able to deduct income tax through the country’s pay-as-you-earn plan. Bonuses can also be paid using digital currencies but the new rules exclude self-employed workers from switching their income to cryptocurrency.