Topic: Imagine African countries using Bitcoin to pay salaries, - page 5. (Read 942 times)

I think even if the government of a particular country thinks about using Bitcoin to pay salaries, the Instability in the price of crypto currencies will make them change their mind, but another thing is we in Nigeria we keep experiences increase in price of things that really matters to us like food, a bag, Petro, kerosene, gas, transportation, things like that increases In prices by almost 50% person without the government increasing our salaries, so just maybe instability in Bitcoin might not really be a new challenge to us in Nigeria if we start using it, because we have seen worse and still growing.

the first thing you should have considered would have been to verify how many African countries have accepted bitcoin as a legal tender and then you look at out popular it his before even considering suggesting that people receive it as their salary.

How many workers in Africa even have a bitcoin account?

The journey to getting bitcoin adopted in the whole of a nation is a long one and would not be all that easy and the starting point of such journey would be first on educating the populace about Bitcoin and it advantage over the fiat currency and then when people have started looking into it, you can them think of using it partiallyvfor transaction purpose and later on you could look at the possibility of it general acceptance.

I heard many African countries are strict with Bitcoin and even if let say they are not, I will still doubt that they will be having this idea, since many countries who has a stable relationship with BTC are still not doing it. Maybe we are still early for this? As of now, we are only lucky here in the forum to first experience it.

I am not aware of those crypto payroll agencies you listed there but that was cool. Employers can try using it, if they think it's a hassle to manually send the BTC's to their workers. BTC is decentralized so it has nothing to do with the government, although BTC must be legalized first by the governments in order for the employers to start doing this innovation.

Bitcoin is no longer a legal tender in Central African Republic, that law only lasted a couple of months and the country has already rescinded it, reports have it that they backtracked because of how poor the country is and their lack of electricity and other basic amenities, read the news here: https://bitcoinmagazine.com/culture/why-bitcoin-failed-in-car
I don't see how this would help the economy, mind you that they are going to be paying the equivalent of their fiat currency in Bitcoin, that is you will be given the worth of whatever you are earning in Bitcoin, now you have to withdraw it and in doing so you have to pay transaction fees, Bitcoin is also volatile and a dump can take a good chunk out of people's salaries. This plan cannot work, especially in a poor and underdeveloped society.

How will paying salaries using Bitcoin or Crypto help the community's economy? because people will only receive the same amount if they use other currencies and they can even experience losses when the price of Bitcoin drops just a few percent in one day, and I doubt that the government or companies will want to use Bitcoin to pay their employees not because of the euro problem but because it will making them incur greater costs to implement it at least if we look at the current Bitcoin transaction costs, and also by using Bitcoin the banking sector will not be involved in it while companies will always need banking for their company's funding when needed and reducing the role of banks will be displeasing to the parties banking which can interfere with how banks make decisions when entrepreneurs want to take out credit.

im more inclined when it comes to people getting their salary in cryptocurrency but in form of stablecoin, because its not easily get swayed by volatility in which might be a real burden for people even more so with small enough salary, if they want to invest in bitcoin they can easily swap because its already in form of USDT and also for daily life it will be a lot more convenient since this coin available across many blockchain you can literally choose which blockchain you wanna use depends on the transaction fee.
with the fee of bitcoin im worried that some people are hesitant to use it because the fee alone might eat good amount of their salary even obvious with presence of ordinal inscription that quite literally boost the fee to be high right now.
i can be wrong though but when it comes to salary, volatility, fluctuation, and also fee cost should also be judged thoroughly.

I'll start with the simplest question. If you answer it, we will continue to simulate the situation to understand how feasible this is.
The question is extremely simple. Let’s say that in your country they started paying people wages in bitcoins. Accepted, ok. Question: how will the entire population of your country pay with bitcoins - for bread, water, travel on public transport, pay for kindergarten or school for children, buy tea, coffee, buy medicine at the pharmacy...? So - your idea of how this will be implemented?

Theorically it will be the best choice for economy in Africa , with releasing their currency for paying salaries and give bitcoin or usdt in place of it will be helpful for the citizens and for economy , but the Big problem African country still colonized by european country indirectly , they won't be happy when africans country use bitcoin , Euro domination would be in danger and will dicrease ..

This seems like a horse before the cart scenario. If the demand was there, then it would already be gaining traction but the reality is people in these countries are often on subsistence level wages. The money that they earn is very quickly turned around and spent on just the basics that are needed to survive, they don't have any time for extra transaction fees or a slower pace or transferring it into another currency, when they can simply save that money by getting paid directly in the local currency. Nor do the employers particularly want to jump through this extra hoop when there are already established payment systems that would drop their prices even, if crypto actually posed a financial threat to their profits.

Well yeah it doesn't matter if your country does not support Bitcoin as a legal tender but as long as it is not banned there then your're good. Making Bitcoin as payroll depends on your government but I doubt that will happen because of Bitcoins volatility and it's tricky fees. It will only help the growth of your country's economy if local businesses or local wallets will offer goods services in exchange of Bitcoin.

We should not expect this to happen any time soon, while the adoption of bitcoin all throughout the world is growing, most of those that are adopting bitcoin are doing so because of the profits they can get and not to use it as a currency, so I doubt that even if governments changed their posture all of a sudden and allowed this to happen that there could be a lot of people willing to do this, when they can use their fiat currencies instead and pay less fees for each transaction.

No African country would like to support a payment gateway like Bitcoin which they don't have control over in view of that it is not possible for any government to adopt Bitcoin for payment of salary, majority of the countries are not crypto friendly Nigeria recently lifted the ban on cryptos, even if the government eventually adopt Bitcoin for salary payment how many employees are crypto enthusiast? I believe they are just few compared to other users who are investors and traders, however with crypto enlightenment and growing adoption with time it adoption for payment would come to reality.

Why are you imagining the impossible in the first place? African countries are yet to accept bitcoin as a recognized legal tender and you are already imagining using bitcoin to pay salary? Aren't we supposed to be thinking of ways to get it approved first before any other things? The only thing I see using bitcoin to pay salary is problem upon problem. I hope you know the process undergone before salaries are being paid to civil and public servants. Now, imagine using bitcoin as a payment method with the fluctuating nature and what will happen before this process is being completed.

Despite that almost all the workers are learned people, majority are still not digitally exposed and by paying them with bitcoin, government is putting their hard earn money on risk of theft. Wallet security is very necessary in order to use Bitcoin safely. We have unlearned staffs such as the guard, messengers and cleaners. Unless government intends to suffer this category of people, this is not a good idea. Even if they (government) eventually approved bitcoin as a legal tender, I don't see using it to pay salary as wise opinion.

The government paying salaries to whom? The government officials or the employees in the private sector?
1.The government can't pay salaries to the employees in the private sector, because they are in the private sector. It's obvious.
2.No government in the world would agree to pay the salaries of the government officials by using BTC. I don't count some small counties, which have weird presidents like El Salvador.
3.If the business owners(in Africa or anywhere else) want to pay salaries in BTC, almost no government in the world can stop them.
The problem is that the employees have to convert the BTC to fiat, in order to pay for food, bills and taxes. This makes the whole process a little bit pointless.

It is a very bad choice for anyone to receive their salaries in Bitcoin. It is because Bitcoin is the worst payment method. It is slow and expensive. Bitcoin is good as an investment which has out performed nearly all asset classes. At the same time it is not a good payment method.

I don't think any countries have yet adopted Bitcoin to this level where the companies are encouraged to pay the salaries in Bitcoin. El Salvador is maybe an exception.

Anyway, while thinking of paying salaries in Bitcoin we should also realize that Bitcoin transactions right now don't give us joy. Fees are unbelievably high and discouraging, to say the least; frustrating. Again, whatever countries that make Bitcoin a means of payment should make it optional. We can't say because we're Bitcoin enthusiasts that everyone should be forced into accepting it as legal tender. There should be moderation and consideration for others who aren't in tune with it.

My country just lifted ban on cryptos and their related activities a few weeks ago. From precedence, I don't think that government of my country can come around to using it as a payment option. That's my feeling. I may be wrong.

You must be a big dreamer, my friend. First, Bitcoin is not a legal tender in the country, the central government must approve it after it has been successfully passed by the national assembly before such happens. Secondly, it will be an option for staff and not by force simply because they must agree with some terms if they would be paid in Bitcoin as Bitcoin is a volatile asset, which means that most of the staff will not receive the amount they were supposed to be paid. At times, it will be higher and at times it could be lower and devastating, so it will be impossible for the government to force it on people.

The workers also have the right to take the government to court if they are adamant about it as they are entitled to have to get paid for what they worked for. Thirdly, this is meaningless to the economy as it is, what if the workers agree to it and the citizens of Nigeria disagree? I mean the market sellers and all the people where the workers will spend it disallowed it? It will only amount to waste as the workers will quickly be changing it to fiat so that they can be able to spend it. Lastly, have you thought about the higher fees that the government and the staff will part ways with in the name of Bitcoin? In Nigeria, a few dollars is a big money due to the economy and bad FX. Imagine this time when the average fee to send Bitcoin is about $5, which is huge in the country, this can't be a good idea that could replace the almost no-fee transactions they receive their money with and are used to. There are many other factors to discourage this view of yours but let's leave it to this for now.

I know there are companies that pay in Bitcoin, but I know no government of an African country pay its workers in Bitcoin, maybe because Bitcoin is not a legal tender yet , but it can gain popularity to the extent of being used as a legal tender and then government workers of that country can earn in Bitcoin, Which will be good for the good of the country and workers, but the instability of Bitcoin can cause a decline in countries adopting it as it's legal tender, because the Values may increase or decrease anytime which will affect the value of the Bitcoin in a  normal currency value.

Adopting a salary payment system in Bitcoin will depend on each country's regulators. They need to check and see everything before they start adopting it. If Bitcoin is not used as a means of payment, it will be difficult for workers to use their Bitcoin for shopping.

But if the government has fully legalized the use of Bitcoin as an alternative payment, there is no problem. However, the current increase in transaction costs makes regulators think long before they decide.

Maybe another way is to continue paying salaries using the usual method. Meanwhile, regulators can allow people to use Bitcoin or crypto to invest in Bitcoin fully. This will give people the opportunity to start investing in Bitcoin so that it can help improve economic conditions for the better.

Don't overlook something that has not properly studied yet and we know bitcoin is very volatile currency which is hard to adopt by some people in the world and if happen that the employees will receive bitcoin as their salary then the market dump for sure a lot of people will get crazy for that scene so I think this need a lot of study and also need to conduct a good introduction so that people will not be surprised on any turn of events that might possibly happen in the market.

For now its good for bitcoin to exist like this and let the people discover on how to use this since by the time people is well prepared for adopting this currency for sure they would provably know how to deal with bitcoin if they receive it on their wallets as part of their monthly wages.

But for now this is far to happen to many issue at government side that need to address since they don't see bitcoin as good alternative to their currency.