A shipping company in Japan, Nippon Yusen KK has made plans to pay its crew members using digital currency. This is a digital asset that will be backed by the US dollar in order to ensure its stability. The new payment method will enable sailors to transfer their funds to their own bank accounts with ease.
Cash-based System Poses Payment Difficulties
The Tokyo-based company is said to be one of the largest in the country. It owns about 800 ships where each has about $40,000 to $60,000 worth of cash aboard. This is the money that is used to pay salaries and make other expenses. As a result, it might be difficult to pay to 20 to 23 crew members on each ship.
Also, it was revealed by a group of workers that one of the problems these crew members encountered was in managing their funds. These are people who live in other countries, and as such, they have to transfer their earnings which were mostly paid in cash, across borders.
Digital Currency to Make Handling Funds Easier
Therefore, a digital currency that can be converted to fiat money will make it easy to manage these funds. It will also make it easy to track expenses and send money anywhere in the world.
The unknown currency will be pegged to the US dollar and may be considered as a stable coin. This is because it will be less volatile than other cryptocurrencies. For this reason, its price will be maintained since it will not devalue easily. Right from a mobile app, sailors will be able to manage and convert their money.
Consequently, efforts are being made to make digital currencies widely accepted by banks so that they can be converted to fiat money. Yusen is now the first shipping company that plans to pay salaries using digital currency. The company is also hoping to offer this service to other shippers so they can use it to pay their workers.
Other Companies Using Digital Currency as a Method of Payment
Some companies are also paying their workers bonuses using digital currency. Instead of payment via cash, employees are made to receive them as a virtual asset. An example is a Japanese provider, GMO Internet Inc., that pays its workers part of their earnings in Bitcoin.
In a similar event, IvyPay has provided a payment service which allows Australians to pay their bills using cryptocurrencies. These users can convert Bitcoin, Ethereum, Litecoin, and other assets to fiat money, and then transfer it into their bank accounts. So far, it has received a lot of attention.