Last week, Bitcoin payroll provider Bitwage made an announcement. Starting from last week, company clients can sign up for the Bitwage platform. This way, they can pay their workers using the USD Coin (USDC) stablecoin. It is worth mentioning that, USD Coin is linked to the price of the U.S. dollar. Moreover, salaried workers or freelancers also have the opportunity to gin up to receive wages from employers in the coin.
Interestingly, this decision comes at a time when the coronavirus pandemic created a lot of problems for the global economy. Moreover, many national currencies have lost value against the dollar.
Notably, USDC is a fiat-collateralized stablecoin that dates back to 2018. Interestingly, P2P payments fintech firm Circle and crypto exchange Coinbase created CENTRE consortium. The purpose of this consortium was to develop price-stable crypto assets and network protocols.
People should take into account that the stablecoin comes as an ERC-20 standard token on the Ethereum blockchain. Also, this stablecoin is backed by the corresponding USD held in accounts, subject to regular public reporting of reserves.
Bitcoin payroll provider Bitwage and stablecoin payments
It is worth noting that, using stablecoins for payments is a relatively recent trend but this trend is fast-growing and this good news. Thanks to stablecoins it is possible to remove the risk associated with volatile movements of cryptocurrencies such as Bitcoin and Ether.
Based on the information provided by the Bitwage, the fiat-backed tokens are becoming more popular in South America. It makes sense as the Venezuelan Bolivar depreciated significantly since June. For example, Bolivar fell by more than 3000% against the dollar. In such cases, it is better to use stablecoins such as USD Coin to provide more stability for communities.
Bitcoin payroll provider Bitwage offers its services to the residents of the U.S. as well as Europe, Latin America, and Asia.