Salaries Being Legally Paid In Cryptocurrency In Costa Rica

Local media reported recently that workers in Costa Rica may soon start receiving part of their salary in cryptocurrency. There is no reason it can’t be effective as far as the Costa Rican law is concerned. According to their legislation, employers are allowed to partly remunerate their staff with goods other than currency, the only requirement being that the legal minimum wage is paid in money. By so doing, the concept of “quasi-money” is being developed, or any asset that can be used as a means of payment and has been widely accepted likewise in the society.

Rolando Perlaza, working with Nassar Abogados, a prominent law firm in Central America, said: “this is a trend that could take hold in the country.” He continued by saying that (as quoted by Costa Rican News): “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.” He said that employees are protected by article 166 of the country’s Labor Code.

It was noted in the publication that in October last year, the Central Bank of Costa Rica (CBCR) had issued a directive which established that cryptocurrencies are outside the national banking system. It was also indicated in the document that carrying out any type of commercial transactions with digital coins is a “limited option” in the country. The central bank also warned that those who use cryptocurrencies should be ready to assume the associated financial risks.

In recent years, despite CBCR’s assessment, the local crypto sector has known steady but noticeable development, with a growing number of merchants and other businesses that include many hotels and companies from the tourism industry that recognize cryptocurrencies as a legal payment method. There are also a number of ATJs that have recently been popping up in the capital San Jose and other regions in Costa Rica.

The report states that the Latin American country also offers favorable conditions for crypto mining. The credit goes to its renewable sources. Daniel Yépez, a local entrepreneur said: “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.” He added that: “Cryptocurrencies are here to stay and we are embracing the changes.”