Costa Rican Workers Can Be Legally Paid in Cryptocurrency
Employees in Costa Rica can receive part of their salary in cryptocurrency and that wouldn’t be against the law. Certain provisions in the national legislation allow companies to pay their workers not only with fiat money but also with goods, and some legal experts believe cryptos can fit in this category. Besides, Costa Rican laws provide for the use of commonly accepted assets as means of payment.
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Cryptos in Costa Rica Can Be Goods, Assets, Quasi-Money
Workers in Costa Rica may soon start receiving a portion of their salary in cryptocurrency, local media reported. As far as Costa Rican law is concerned, there is no reason this cannot happen. The country’s legislation allows employers to partly remunerate their staff with goods that are not currency, as long as the legal minimum wage is paid in money. It also develops the concept of “quasi-money”, or any asset that can be used as a means of payment and has been widely accepted as such in the society.
“This is a trend that could take hold in the country,” said Rolando Perlaza who is working at Nassar Abogados, a prominent law firm in Central America. “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,” the expert elaborated, quoted by the Costa Rican News. He also emphasized that in any case employees are protected by article 166 of the country’s Labor Code.
The publication notes that in October last year, the Central Bank of Costa Rica (CBCR) issued a directive which established that cryptocurrencies are outside the national banking system. The document also indicated that carrying out any type of commercial transactions with digital coins is a “limited option” in the country. Along with that, the central bank warned that those who use cryptocurrencies assume the associated financial risks.
Costa Rica’s Growing Crypto Sector
Despite CBCR’s assessment, the local crypto sector has been developing steadily in recent years with a growing number of merchants and other businesses, including many hotels and companies from the tourism industry, accepting cryptocurrencies as a legitimate payment method. Costa Rica, which has remained relatively open towards business ventures in the crypto space, has also seen a number of bitcoin ATMs popping up in the capital San Jose and elsewhere.
According to the report, the Latin American country also offers favorable conditions for crypto mining thanks to its renewable sources. “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,” said Daniel Yépez, a local crypto entrepreneur. “Cryptocurrencies are here to stay and we are embracing the changes,” added Yépez whose company, SH Mining Technologies, specializes in providing cloud mining services.
Can cryptocurrencies be used as legal means of payment under the current legislation in your country? Let us know in the comments section below.
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