In a recent ruling by the Dubai court, companies in the UAE are increasingly considering including cryptocurrencies as part of the salary package for their employees. While this is viewed as a progressive move towards embracing the evolving financial landscape, experts caution against investing large amounts of income in cryptocurrencies due to their highly volatile nature. This trend is already prevalent in technology companies globally and is expected to gain momentum in the UAE in the near future. As regulations surrounding digital currencies progress, more companies are likely to explore offering salaries in cryptocurrencies.
Munaf Ali, co-founder and managing director of Phoenix Group, mentioned that his company is also considering incorporating cryptocurrencies into their employees’ salary packages. This move aligns with the growing adoption of cryptocurrencies in the UAE, where they are being used for retail transactions, Internet purchases, and even real estate transactions. The advantage of paying salaries in cryptocurrencies lies in the speed of transactions and reduced fees, allowing employees to receive their payments anywhere in the world. Stablecoins pegged to the UAE dirham are also being introduced to facilitate seamless salary payments in digital dirhams.
Paolo Ardoino, CEO of Tether, emphasized the importance of considering cryptocurrencies as a form of salary payment while warning against excessive speculation. Stablecoins like USDT, which are backed by national currencies, provide a safe alternative for monetary transactions. The accommodating approach of the UAE towards digital currencies has been praised by industry professionals, with Ardoino noting that the country’s flexibility and support for innovation have attracted individuals and businesses looking to explore the potential of cryptocurrencies. This progressive attitude sets the UAE apart from more conservative jurisdictions that may restrict the use of digital assets.
