Bitwage, an automated international bitcoin payroll platform has partnered with bitcoin cloud-based financial service provider Bitreserve, to implement its newly developed platform called Bitreserve Connect and developed a new product called Bitwage Cloud Savings.
Bitreserve Connect, which was launched on June 16 at MoneyConf in Belfast, is a cloud-based bitcoin/money platform which allows businesses to:
- Hold, send and convert money instantly — and for free — to anyone
- Incorporate Bitreserve’s best-in-class anti-money laundering (AML) and know-your-customer (KYC) security and information infrastructure to ensure businesses meet regulatory requirements.
- Conduct completely transparent transactions, where all money held, sent and converted can be traced in real-time;
- Secure and protect customer deposits with one-to-one reserve backing.
Bitwage is one of the first four financial technology platforms to implement Bitreserve Connect. With the help of Bitreserve, Bitwage has introduced a new product, Bitwage Cloud Savings, which enables employees to store their payments in “9 currencies and 4 precious metals, including US dollars, Bitcoins, Euros, Pounds, Mexican Pesos, Indian Rupees, Gold, and Silver.”
Bitwage Founder and COO Jonathan Chester announced in a blog post:
From paycheck to paycheck, Bitwage users will be able to decide exactly how their salary is paid. Whether you are an Argentinian contractor wishing to hold US Dollars, a Russian software developer looking to hold Euros or a US employee who wants to be paid in a split between Bitcoin, Gold and Dollars, Bitwage gives the choice back to you. This is where Bitreserve Connect comes in, and where Bitwage makes an extraordinary leap forward. Earlier today, Bitwage announced a brand new product, Bitwage Cloud Savings. By integrating with Bitreserve, they are now offering their customers the freedom and flexibility to be paid not just in bitcoin, but in as many as 8 different currencies and 4 precious metals. Starting today, “Bitwage users will be able to decide exactly how their salary is paid.
Bitwage’s new product and implementation of Bitreserve’s technology solves the ultimate problem of employees and merchants: volatility.
Tim Parsa, Bitreserve CCO has explained that “those living paycheck-to-paycheck literally can’t afford volatility, and no one at any financial level should have to accept the possibility of a significant and unexpected salary loss caused by bitcoin,” especially in countries like Guatemala and Mexico, where he observed such inconvenience. He said it “means that for the unbanked and underbanked, there now exists a solution that allows them to participate in the global digital marketplace and avoid the slow, costly process of check-cashing services.”
There are two main motivations behind the new feature says Jonathan Chester, COO of Bitwage. Chester explained further in an interview with Bitcoin Magazine, “The first is to encourage more bitcoin transactions. Through the Bitwage Cloud Savings service, users can receive their entire wages in bitcoin, without having to have their entire wage exposed to bitcoin volatility. This makes it way easier for people to receive more of their wages in bitcoin. As you spend out of your Cloud Savings account, powered by Bitreserve, you are creating a bitcoin transaction. As we continue to grow the number of bitcoin transactions, the upward price trend will become less volatile.”
The second motivation is related to international payrolls, he said. “Most international employees, contractors and freelancers want all the efficiencies of bitcoin without having to deal with the volatility risk involved or with Bitcoin directly. This brings us one step closer to providing a solution that can be used for a global mainstream audience.”
Chester also explained that places with high inflation and huge costs in both time and money for receiving wages are in need of a system like Bitwage Cloud Savings the most.
“Argentina is a great example of where all three of these aspects intersect,” he said. “Employees and contractors often lose between 30 percent and 40 percent of their wages when sent from abroad just to hold the funds in a currency which had 40 percent inflation in 2014.”
There are also countries with just a few of these aspects, such as Greece and Brazil, he said.
“In Greece, inaccessibility is a real issue. Many people are afraid they won’t be have money soon. Being able to hold your funds in a currency you trust in the cloud instead of a bank in Greece which is likely to freeze your funds or even take some of it through government decreed bail-ins,” he said.
“So how exactly would you even be able to get into a cloud savings-like system if your bank accounts are froze?” Chester asked. “Your wages.”