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Sequoia plans to pay employees in Bitcoin

Sequoia plans to pay employees in Bitcoin

Sequoia Holdings has announced that its employees can now get a portion of their salary in cryptocurrencies. The firm stated about commencing a new program enabling employees to yield a part of their salary into cryptos.

Sequoia is a software development company that offers engineering and analytic solutions to the national security sector in the U.S. The firm’s clients involve numerous agencies involved in U.S. intelligence, defense, and homeland security. Sequoia summoned the current instance described by Russel Okung, an American football offensive tackle for The National Football League’s Carolina Panthers. He grabbed the limelight for becoming the first football player to earn a part of his salary in Bitcoin. This is a similar approach that Sequoia employees plan to adopt.

Sequoia to join hands with third-party payroll processing company

Further, Sequoia intends to collaborate with a third-party payroll processing company to withhold taxes and transform the rest of the salary into cryptocurrency, kept in a digital wallet managed by the payment firm. Moreover, Sequoia states that this is comparable to how an employee may yield a portion of their salary via a 401(k) retirement fund. Nevertheless, the difference here is that this only applies to income after the deduction of taxes. 

The announcement occurs at a time when Bitcoin performed strongly in 2020, notwithstanding the COVID-19 pandemic. Earlier this month, the first cryptocurrency rose to a record high of $40,000. Thus, growing by almost 900% from a current low of $3,850 in the March crash and exceeded the $20,000 level for the first time in mid-December. The surge resulted from heightened demand from corporate, institutional, and, more lately, retail investors. They observed Bitcoin as a hedge against inflation and drawn by the prospect of quick gains.

Furthermore, crypto-centric firms such as crypto-exchanges, analytics companies, and media outlets often repay completely in cryptocurrencies like stablecoins. Indeed Tesla founder and CEO Elon Musk recently promoted Bitcoin as a payment mechanism. With an outperforming market, numerous firms are climbing aboard. AT&T, Overstock, Starbucks, Microsoft, KFC Canada, and Wikipedia are some of the most famous firms accepting Bitcoin.

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