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Do People Want to Get Paid in Digital Coins?

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“I do think Bitcoin is the first encrypted money that has the potential to do something like change the world,” said co-founder of PayPal, Peter Thiel. 

And he was right.

Cryptocurrencies are a topic that has been trending for years when talking about finance and investments. Recently, digital coins have been talked of the town due to job-related issues. Have you heard of mayors of Miami and New York City receiving their first paychecks in crypto? Or two footballers, Aaron Rodgers and Russell Okung, taking a portion of their salary in Bitcoin?

If so, then a new salary trend is no surprise to you. But if it is, Zety has prepared a study about employees getting their money and bonuses in cryptocurrencies.

Crypto Status

In 2021, Pew Research Center showed that 16% of Americans have ever personally invested in, traded, or otherwise used cryptocurrency. This data was supplemented by the New York Digital Investment Group reporting that 22% of adults owned Bitcoin in the same year. 

This percentage hovering around 20% may seem small until you realize that we are talking about over 40 million Americans. And the number of people engaged in crypto is undoubtedly much higher this year. 

Having that in mind and all the buzz created, for example, by Elon Musk, it’s not surprising that people follow the crypto market.

And they do, as the Zety study proved. Almost all (99%) people know what cryptocurrencies are. They are most familiar with Bitcoin (97%) and Ethereum (86%). Similarly, people know what NFTs, non-fungible tokens, are (90%).

Witnessing that the concept of cryptocurrencies is no stranger to employees and that they’re practically involved in the market, it is not surprising that the idea of getting paid in digital coins emerged. 

Digital Salary

Receiving salary or bonuses in Bitcoin, Ethereum, or other digital coins is not regulated by law. However, this doesn’t mean that such an option is not attractive. 

73% of respondents rate the idea of getting paid in crypto as good or very good. This gives us 7 out of 10 employees potentially willing to accept their work-origin crypto transfers. But digging deeper, the issue appears to be more complicated as:

  • 40% would prefer to be paid both in standard currency and crypto.
  • 32% would like to be paid entirely in a traditional way. 
  • 21% would choose to receive all payments from the employer in crypto.

But still, this data paints a relatively optimistic picture of employees’ attitudes toward crypto salary. 

What is more, 75% claimed that they received a salary or bonus in digital coins at least once. What is worth noting is that they didn’t necessarily receive a direct crypto transfer from their employer. Exchanging all or part of a paycheck for digital coins also counts. 

But still, where does this come from? 

Let Richard Branson, the founder of the Virgin Group, explain it to us. Some time ago, he said: 

There’s a big industry around Bitcoin— People have made fortunes off Bitcoin, some have lost money. It is volatile, but people make money off of volatility too.”

And it appears that this profit-boosting volatility is quite appealing. Why? 98% of those respondents who have received compensation in crypto observed an increase in its value.

Data encouraging to invest? Not unless we know the complete list of all crypto advantages and disadvantages.

Crypto Pros and Cons

The two-time Nobel Peace Prize nominee Leon Louw said: 

“Every informed person needs to know about Bitcoin because it might be one of the world’s most important developments.”

Knowing all of their advantages and disadvantages when talking about getting a salary or bonus in crypto is necessary. The list presented below is not enough to delve into the topic of cryptocurrencies. It requires weeks of analysis and gaining some degree of expertise. But still, some basic pros and cons can give you a basic insight into what cryptocurrencies entail.

Among the top five crypto strengths, people point out:

  • investment opportunities (34%)
  • immediacy of transactions (31%)
  • no fees for international transactions (28%)
  • bypassing the bank (24%)
  • diversification of income (23%)

On the other hand, in the list of the five most frequently mentioned disadvantages we find: 

  • unstable exchange rate (28%)
  • vulnerability to hacking attacks (26%)
  • complexity of taxes in terms of crypto (21%)
  • no fraud protection (21%)
  • legal issues (20%)

It’s not the complete picture but shows some aspects worth considering when deciding to buy, invest or trade those digital currencies. And for sure, they’re worth knowing when the idea of getting paid in crypto appeals to you. 

Things to Consider by Employees

Does the above information affect employers in any way? Indeed. It’s worth looking at the data from the same study again. 

74% of respondents would be more likely to work for a company if it paid a salary in crypto. At the same time, 71% would prefer to work for an employer if they paid bonuses in crypto.

The conclusion here is simple. The employer that is open to crypto is perceived as more attractive. But the crypto payout should just be a no-obligation proposition, some sort of benefit occurring alongside a sports or medical package. Offering payouts only in crypto is more abstract than attractive.

When respondents were asked if they would quit if the employer paid salary ONLY in crypto, 69% said yes.

Future or fad?

Cryptocurrencies have already proven to be a source of quick and easy income as well as quick and easy loss.

The future of crypto payouts and bonuses will undoubtedly be affected by the legal regulation of the market. People who want to popularize crypto as a method of remuneration will also have a voice.  

But don’t expect people to forget about this trend. 86% of survey takers would want to be paid in crypto if the proper legal and tax regulations were created.

At the same time, 81% think that more people will want to get paid in crypto in the future.

What will it be? Well, the future will tell.

Image Credit: Alesia Kozik; Pexels; Thank you!

Nina Paczka

Career Advisor

Nina is a career advisor and job search expert. Her professional advice, insight, and guidance help people find a satisfying job and pursue a career.

Politics

Fintech Kennek raises $12.5M seed round to digitize lending

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London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Politics

Fortune 500’s race for generative AI breakthroughs

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Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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Politics

UK seizes web3 opportunity simplifying crypto regulations

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Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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