Crypto payroll company Bitwage has informed its customers through an email that it will be disabling payments in USD Coin (USDC) for U.S. residents. This decision comes as financial regulators in the United States have ramped up their scrutiny of the cryptocurrency industry, leading to charges against major crypto firms like Binance and Coinbase. Users who fail to remove USDC from their wallets by July 13 will have their wallet and bank accounts reset. This means that they will need to set up their wallets and bank accounts again before their next paycheck can be deposited.
Alternative Payment Options Still Available for U.S. Residents
While Bitwage is discontinuing USDC payments for U.S. residents, it assured its customers that they can still receive payments in other cryptocurrencies, such as Bitcoin (BTC), as well as alternative stablecoins like CUSD (Celo), Tether’s USDT, and DAI. This measure only affects U.S. residents and does not impact non-U.S. residents using Bitwage’s services.
Partnership with Vibrant to Facilitate Stablecoin Payments for Remote Workers
Bitwage’s decision to disable USDC payments for U.S. residents comes shortly after the company announced a partnership with Vibrant. This collaboration aims to provide seamless and zero-fee USD stablecoin payments for remote workers worldwide. The move away from USDC could potentially benefit Bitcoin, as utility usage of the flagship cryptocurrency has declined in recent years with the rise of stablecoins. With increasing restrictions on stablecoins, the pendulum may swing back in favor of BTC.
Bitwage, headquartered in San Francisco, is a crypto payroll company that facilitates payroll payments using cryptocurrency. The company has processed over $200 million in payroll payments and boasts a user base of over 50,000 workers. In addition to its operations in the United States, Bitwage also provides payroll services in Europe, Latin America, and Asia.
With the increasing regulatory scrutiny faced by the cryptocurrency industry in the United States, Bitwage’s decision to disable USDC payments for U.S. residents reflects the challenges and uncertainties faced by companies operating in this space. However, the availability of alternative payment options and the partnership with Vibrant offer potential solutions for Bitwage and its customers. As the crypto landscape continues to evolve, it remains to be seen how companies like Bitwage will adapt and navigate the changing regulatory environment.