Good news coming to the digital currency space as one of the countries in the Asia region have just approved bitcoin and cryptocurrency for salary payments. It was first rejected in 2023 and now approved by the First court of instance.
Dubai's Court of First Instance recognized cryptocurrency as a valid form of salary payment, marking a significant shift in the UAE's approach to digital currencies. This decision is a notable update from the court's previous stance in 2023, where a similar case was rejected due to issues with valuing crypto payments.
This is just a recognition and it's not mandatory it will now depend on the employers if they would like to support this kind of action but I guess the people will be against it is the employees because we know how the market is volatile imagine it your payday and debit already to your wallet address and unexpectedly the market crash and makes a 5% price down movement still its a huge amount to others so they would prefer the use of the fiat currency. Again base on the statement its just recognized it depends on the institution if they adopt this.
Well, it's highly likely that employees will prefer fiat more than bitcoin as a salary payment due to volatility, but maybe out of 10 employees, there might be 1 employee who will prefer bitcoin most especially if he knows well about bitcoin. I guess in the long run, if bitcoin will be highly acknowledged in Dubai in the future, then receiving their salary will be based already on their own request or preference.
Provably fiat would be preferable since there's no people with zero knowledge about bitcoin is willing to accept this asset especially if they know how volatile this coin. Provably they get worried about if there's a huge decrease of their salary if price of bitcoin dump by the time they receive their salary.
But although this one has been implemented hopefully they didn't force their employee to receive bitcoin, but rather they give them an option to choose on what they want to receive either bitcoin or fiat. But for sure it will take time for people to digest this new form of payment implemented to them. Although this is really a good start for them since by doing this initiative it somehow introduce bitcoin to a lot of people in their country.