With Facebook launching its very own cryptocurrency named Libra, there was a significant movement in the crypto industry with Bitcoin crossing the USD 10,000 mark. According to The Information, one of the leading US-based news platforms, there will be a handful of Facebook employees working on this Libra project, and there are rumors that they will have an option of choosing the currency for their salary: cryptocurrency or hard cash. But, can cryptocurrency really replace hard cash when it comes to paying employees their monthly wages?
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Advantage Of Cryptocurrency
One of the reasons that give Libra an edge over other cryptocurrencies like Ether or Bitcoin is that it is developed in such a way so that it can avoid market volatility. This eliminates the risk of the currency’s value going up and down tumultuously. You can also use the services of cryptocurrency trading robots to compare the cryptocurrency values before opting for Libra.
Most importantly, Libra is backed by several assets and currencies that are stored in reserve. This reserve is invested in government securities, bank deposits, and low-risk assets that yield interest and help to preserve the intrinsic value of the currency; pretty much what you would do if you had hard cash in your bank account.
To ensure more users adapt to this system of accepting cryptocurrencies instead of hard cash salary, the Libra association will pay incentives to the founding members in Libra coin including popular players like Mastercard, eBay, PayPal, Uber, Visa, etc.
Facebook’s market penetration is also expected to kick start Libra’s usability, especially in the field of consumer tech where customers can purchase digital products after going through more info and reviews about them.
Will This Initiative Work?
Although there is no confirmed news as of now whether Facebook will activate cryptocurrency as the new mode of salary payment, it will be exciting to see if Facebook employees opt to accept payment in Libra. In fact, this is not the first time that any company would offer their employees to use their services or products.
Paytm is a classic example of this kind of initiative. A couple of years ago, Paytm, a fintech company, decided to credit employee salary to their Paytm Payments Bank. Employees could purchase clothes, groceries, book train/flight tickets, and pay for utility bills directly from their Paytm account.
But, according to RBI mandate, users could not hold more than INR 1 lakh as deposit in this bank. So, they could link their original bank account to the Paytm account and transfer the excess money instantly.
Experts from different blockchain companies believe that if cryptocurrencies can outwit the frequent volatility, they can quickly become a part of payment-related service. But, since Libra is already out of that volatile zone, it can make significant progress if the company decides to use it as a payment option.
Whether the employees will immediately opt for Libra as their salary-payment mode is something that everyone must wait and see, but this new cryptocurrency boasts of all the qualities to become one in the future.
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