Even if workers are paid in stablecoins, they may have to pay additional costs for currency conversion, withdrawals and transfers before they can use the money for living expenses, an observation has been raised.

On Sept. 20 (local time), blockchain media outlet CryptoSlate reported that stablecoin pay can reduce international remittance costs, but take-home pay may fall if the costs incurred in converting it into usable money are passed on to workers.

Companies are also continuing to introduce stablecoin payroll. Galaxy Payroll Group announced its own service on Sept. 2 and said it plans to roll it out in stages during September. Deel already provides a stablecoin payment service and updated guidance for employers on Sept. 17. Deel stressed that paying wages in stablecoins does not remove existing obligations on wages, taxes, withholding and reporting.

The key is not the speed of remittances but when workers can actually use their wages. A company may use stablecoins internally while paying workers in fiat currency, but if workers receive stablecoins directly, they may bear costs and some responsibility in the process of converting them into local currency.

Wage payment terms must also be clear in advance. If a company promises a net pay of $2,000 (about 2.8 million won) and pays stablecoins worth $2,000, the amount the worker can actually use falls if the worker bears the cash-out fee. For example, if conversion and withdrawal costs are 1 percent, $2,000 becomes $1,980 (about 2.75 million won). This 1 percent is an example, not an actual market fee.

What matters, therefore, is not only blockchain transaction fees but the total cost of converting wages into a form that can be used. Costs may be included not only in withdrawal and conversion fees but also in the exchange rate applied when converting into local currency.

Employers' legal obligations also remain unchanged. Paying wages in stablecoins does not automatically change existing wage rules. U.S. federal rules specify cash or negotiable instruments payable at face value in connection with minimum wage and overtime pay under the Fair Labor Standards Act. Not all cryptocurrency compensation is prohibited, and rules may differ for additional compensation, independent contractors or workers in other countries.

Exchange-rate fluctuations are also a variable. Even if a dollar-pegged stablecoin such as USDC maintains a value around $1, wages' real value can change with exchange-rate moves if rent and food costs are set in local currency. Even if stablecoins are received in seconds, the advantages of fast payments are limited if they cannot be used or converted immediately.

There may also be constraints in redeeming USDC directly for dollars. Circle's USDC terms distinguish between eligible customers who can redeem directly and holders who cannot, and they also state the possibility that certain addresses can be blocked or that USDC can be frozen through legal action. As a result, workers may have to convert through an exchange or other services, and if account restrictions or withdrawal delays occur, they may not be able to use the funds immediately even if they have stablecoins in their wallets.

The burden of taxes and record-keeping also remains. The U.S. Internal Revenue Service requires employers to calculate the fair market value in dollars at the time virtual currency is paid as wages and include it for income tax withholding and employment-related taxes. If the asset is later sold or disposed of, records may also be needed to verify the times of receipt and disposal. The UK can also apply income tax and national insurance contributions to crypto assets received through employment, and capital gains tax issues may arise when they are later disposed of.

Ultimately, the key to stablecoin payroll is not how fast it arrives in a wallet. It has the advantage of lowering international payment costs and transferring funds quickly, but for workers, what matters more is how much they can actually use when paying rent and living expenses.