Stablecoin Payrolls: Withdrawal Fees Eat Into Workers' Pay
- —Example: $2,000 in USDC becomes $1,980 after a 1% conversion and withdrawal fee
- —Costs stack from withdrawal fees, exchange fees and unfavorable rates with embedded margins
- —Circle's USDC terms separate clients who can redeem directly from the issuer and other holders
- —The IRS values crypto salary in dollars at receipt and requires employment tax reporting
Why it matters: Workers bear hidden costs when paid in stablecoins, which could slow corporate adoption of token-based payroll.
Source: 2Bitcoins.ru