UAE Firms Adopting Crypto Salaries: A Growing Trend?

Payment in Cryptocurrencies: Are More UAE Companies Embracing It?

Warnings about the risks of receiving salaries in cryptocurrencies have been raised, as employees would need to live off that amount.

In the upcoming years, more companies are likely to incorporate cryptocurrencies into their payment packages in the United Arab Emirates, particularly following a Dubai court ruling last month.

Industry experts, however, caution that those receiving their salaries in cryptocurrencies should avoid speculation and refrain from making large investments with this income. Cryptocurrencies are extremely volatile investments, and individuals could face financial issues if they invest a large portion of their monthly income in them and the prices plummet suddenly.

A Dubai court instructed a company to pay an employee's withheld salary in both the UAE's official currency and the cryptocurrency specified in the employment contract. This is seen as a progressive step given the rapid development of financial instruments.

Currently, numerous tech companies pay a portion of their employees in cryptocurrencies worldwide, and this trend is expected to gain momentum in the UAE in the future.

According to industry leaders, cryptocurrencies will achieve wider acceptance as part of payment packages, not just within the tech industry but beyond as well.

With regulations becoming more established around digital currencies and assets, many companies will consider integrating cryptocurrencies into their payments.

Phoenix Group, listed on the Abu Dhabi Stock Exchange, and digital asset company Tether announced plans to launch a stablecoin pegged to the UAE dirham in January 2025.

"Cryptocurrency acceptance is growing day by day in the UAE, and they are already usable for retail transactions and online purchases. We are also seeing increasing interest in using them for real estate transactions. Major developers are actively accepting cryptocurrencies as a form of payment, so we'll gradually see more such transactions over time," they noted.

"As regulations are enacted and embraced, more companies will join, and many people will be eager to receive their salaries in cryptocurrencies. The advantages of cryptocurrency payments include fast transactions and reduced fees. Payments can reach any point in the world," they added.

The stablecoin will be equivalent to the UAE dirham, meaning one coin will equal one dirham, ensuring salaries will remain consistent in digital dirhams too.

Warning

The CEO of Tether stressed the importance of companies considering cryptocurrencies as part of their payment options.

However, he warned against excessive speculation for those receiving their salaries in cryptocurrencies since they need to live off that amount.

"A stablecoin, such as USDT, represents the national currency. Hence, some stablecoins could be safe substitutes for money. The movement of people's money is increasingly shifting towards digital, and this is where stablecoins come in."

The CEO of Tether praised the UAE's approach to digital currencies.

"The beauty of the UAE is its flexibility and positive attitude towards innovation. I wish I could say the same about other nations. Unfortunately, some governments are more conservative regarding what people can do in their countries. This is why many people move here; because if you are innovative, the government will support you."