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Is this method is not foul on the government? Or it is legal?
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I think it depends on what country you belongs. There are already companies, even just from the early stages after the release of bitcoin, there were already some companies that tried to pay their employees using bitcoin. If you will be implementing this kind of payment salary, you should consult first to your local governor, I think that's the best idea, and you can tackle everything regarding that one. For me it's fine to be paid using bitcoin for the work I've done.
Their is now way a governor of a state will implement such law without the concept of federal lawmakers, because pleasing workers by paying in with btc will not pleased everyone's in the state except its implemented in federal house of Senate before it will function properly.