By Yona Schnitzer
Spot.IM, a Tel Aviv-based social media startup is seeking approval from Israeli regulators to allow them to give employees the option of getting paid in Bitcoin. The main point of contention when it comes to paying salaries in cryptocurrencies is the volatility of the price, which can fluctuate by hundreds of dollars in a single day. To address this, the company plans on using an exchange rate which consists of the average of the day’s highest Bitcoin price, and it’s lowest. Employees will be able to choose which percentage of their salary they would like to receive in Bitcoin, and the company will use the Israeli Bit2C exchange platform in order to convert shekels to Bitcoin once a month for the payout.
Letters requesting approval for the move were sent to the Ministries of Labor, Economics and Welfare, and the company said it expects progress in the coming weeks.
“Bitcoin, like other cryptocurrencies, is turning into a legitimate form of payment both in Israel and abroad, and employees as well as employers are learning about the advantages in using it for long term savings or as a worldwide payment method,” said Ron Zarfati, Vice President of Regulation at Bit2C, adding that Spot.IM will receive a proprietary company account at Bit2C, and every employee that chooses so will receive a digital wallet address where the coins will be stored.
Founded in 2012, Spot.IM is an online social engagement platform, designed for publishing and client engagement.