Jul 23, 2018 07:45 UTC
Jul 23, 2018 at 07:45 UTC
People in Costa Rica can legally receive part of their salaries in cryptocurrency
There’s some really pleasant news for Costa Rican employees who are also crypto enthusiasts. Due to some recent alterations in the national legislation, it is now legal for companies to pay their employees in goods other than traditional fiat currency. Now the loophole in this legislation has been perceived by crypto experts as a way to integrate crypto into that goods category.
It is now being predicted that Costa Rican workers can receive part of their salaries in cryptocurrencies. According to Costa Rican law, a minimum wage needs to be paid in money and the rest can be paid in form of goods. Now according to local media, there is no aspect of the law which states that cryptocurrency cannot be part of the remuneration that falls under the category of goods. This brings to the forefront the idea of “quasi-money”. It is a term in Economics that describe assets that are not money, but can be traded for money.
Legal experts across Central America have turned their focus to this topic. Rolando Perlaza, who is currently working at Nassar Abogados, a prominent law firm in Central America says that “This type of payment would in no way replace traditional or liquid cash. It would rather become an incentive for the workers, who could decide if they accept these currencies as payment for their services,”
Cryptocurrency has been a somewhat tricky topic in Costa Rica. Just last year the Central Bank of Costa Rica (CBCR) issued a directive which excluded cryptocurrencies from the national banking system. It also warned customers that if they are to use crypto, they should assume the financial risks of it.
However, this hasn’t deterred the local crypto sector from flourishing. An increasing number of businesses are accepting crypto as a legitimate form of payment, including many hotels and tourism industry institutions. Along with that, numerous bitcoin ATMs have popped up in San Jose which is the capital city. The country is also pretty resourceful when it comes to crypto mining, courtesy of its renewable resources.
Local crypto experts are of the opinion that cryptos are here to stay and the citizens are openly embracing these digital currencies. Daniel Yepez, a local crypto entrepreneur said that “Our Costa Rica-based crypto mining facility utilizes renewable energy options such as solar and wind. We think renewable energy has to be an essential part of any crypto related project. This green approach is good both for us and for the planet and makes the new business opportunities even better.”