Crypto payroll company Bitwage has announced that it will disable payments in USD Coin (USDC) for U.S. residents. This decision comes as financial regulators in the U.S. have increased their regulatory scrutiny of the crypto industry. Major crypto firms like Binance and Coinbase have recently faced charges.
Consequences for Users
Bitwage has warned its customers that if they fail to remove USDC from their wallets, their accounts will be reset by July 13. This means that users will have to set up their wallets and bank accounts again in order to receive their next paycheck. This measure only applies to U.S. residents and does not impact non-U.S. residents.
Alternative Payment Options
While payments in USDC will no longer be available for U.S. residents, Bitwage has stated that they can still receive payments in other cryptocurrencies. Options include Bitcoin (BTC) and stablecoin alternatives like CUSD (Celo), Tether’s USDT, and DAI.
Potential Impact on Bitcoin
Bitrefill’s market research consultant, Matt Ahlborg, believes that this move could have a positive impact on Bitcoin. As stablecoins have gained popularity in recent years, the utility usage of Bitcoin has decreased. However, with increasing restrictions on stablecoins, Ahlborg predicts that the pendulum will swing back towards BTC.
Bitwage, headquartered in San Francisco, has processed more than $200 million in payroll payments and has a user base of over 50,000 workers. The company offers payroll services in multiple regions, including the U.S., Europe, Latin America, and Asia.
This decision by Bitwage to disable USDC payments for U.S. residents reflects the growing regulatory scrutiny faced by the crypto industry in the United States. While this may inconvenience some users, the availability of alternative payment options ensures that individuals can still receive their earnings through cryptocurrencies. Additionally, the potential impact on Bitcoin suggests that this move could contribute to a renewed interest in the flagship cryptocurrency. Bitwage continues to operate globally, providing payroll services to workers around the world.