Salaries in cryptocurrency: Are more UAE companies set to pay wages in digital currency?

An increasing number of UAE companies are expected to consider incorporating cryptocurrencies into their salary packages in the coming years, following a significant ruling by a Dubai court last week.

However, industry experts caution that employees receiving salaries in cryptocurrencies should avoid heavy speculation and refrain from investing large portions of their income in such assets. Cryptocurrencies are known for their high volatility, and dedicating a substantial part of one's monthly earnings to them could lead to financial difficulties if prices were to plummet.

Globally, many tech companies already pay part of their employees' salaries in cryptocurrency, and this trend is expected to gain traction in the UAE as well. Industry leaders believe that cryptocurrencies will become more widely accepted as part of compensation packages across various sectors, not just within the technology industry.

Earlier this week, Khaleej Times reported that a Dubai court ordered a company to settle a worker's outstanding dues in both UAE dirhams and cryptocurrencies, as stipulated in the labor contract. This ruling is seen as a progressive step, reflecting the rapid evolution of financial transactions.

Paolo Ardoino, CEO of Tether, emphasized the importance of companies considering cryptocurrencies as a form of salary payment but also warned against excessive speculation by those receiving such payments. He pointed out that stablecoins, like USDT, which are tied to national currencies, offer a safer alternative for digital transactions, as they are designed to maintain stability in value.