Cryptocurrency Compensation: Look Before You Leap

Abstract

In recent years, cryptocurrency has begun to ascend as a worldwide phenomenon. As a result of its rising popularity, prospective and existing employees have taken an interest in receiving payment in cryptocurrency. This appeal has prompted compensation professionals and other leaders to consider incorporating cryptocurrency into their compensation strategies. While this form of payment may present as an innovative compensation plan, compensation professionals should be fully aware of the complexities involved and the potential challenges associated with its application. This article provides an overview of cryptocurrency and blockchain technology, reasons why employees may want to be paid in cryptocurrency, pertinent legal/regulatory factors, administrative challenges for employers, associated risks, and recommendations for compensation professionals who may be considering integrating cryptocurrency into their compensation strategies.