Costa Rican Law Allows Workers’ Salaries to be Paid In Cryptocurrency
Costa Rica Permits Salaries Paid In Cryptocurrency
It is now possible for Costa Rican workers to receive reimbursements partially in the form of digital currencies. According to a section of legal experts in the country, the legislation was recently amended and stipulates that compensation can be made in fiat currency as well as in goods, a category in which cryptocurrencies fall. Furthermore, there are provisions in the nation’s rules that permit the use of commonly accepted assets as a medium of exchange.
As noted earlier, the Costa Rican legislation does not explicitly state that salaries can be paid in cryptocurrency form. However, it does not restrict the use of such assets in reimbursing employees. Therefore, it is entirely legal as long as the value of the crypto assets equals the amount of wage in fiat money. Furthermore, the local laws also allow the concept of quasi-money, where the prevalently used asset can substitute conventional means of payment.
According to Rolando Perlaza, an employee of a leading law firm in Central America, this trend will take over the entire nation. Instead of replacing traditional means of salary distribution, this new approach would incentivize workers to have an option of choosing their preferred method of receiving compensation. In conclusion, Rolando cited that the workers are protected by the Costa Rican Labor code.
Notably, the Central Bank of Costa Rica (CBCR) released a directive that classed digital currencies outside the country’s monetary system. Moreover, the order stated that the central bank is not liable for any risks and hazards that result from transactions involving digital currencies.
Rising Popularity of Cryptocurrencies in Costa Rica
Despite the central bank’s tough stance on virtual currencies, Costa Ricans appear to have embraced the concept. To this end, a significant number of business stores in the country are currently accepting cryptocurrencies as a means of payment. Also, there are several Bitcoin ATMs in San Jose, the nation’s capital city.
The presence of vast renewable sources of energy in Costa Rica significantly favors the mining of digital currencies. As per local cryptocurrency investors, the country primarily sources its electricity from solar and wind power plants. For instance, Daniel Yepez, the founder of SH Mining Technologies, the dependence on green energy is beneficial to both the environment and the traders, as it conserves the former and saves the expenses for the latter. Daniel further believes that digital currencies are here to stay, and the Costa Ricans are ready to integrate them into their lives.