14 Nov, 2025

Lessons from Argentina: Stablecoin Salaries for European Businesses

It appears that stablecoin salaries are gaining traction among businesses globally. With inflation wreaking havoc around the globe, more and more companies are looking at stablecoins to keep their payroll running smoothly. Argentina's recent economic crisis has shown us just how effective these digital currencies can be in preserving employees' purchasing power and improving transactions. So, let's dig into how European companies can take a page from Argentina's book and use stablecoins to make their payroll systems more efficient while dealing with taxes and regulations.What Are Stablecoins and Why Use Them for Payroll?Stablecoins, which are basically cryptocurrencies pegged to stable fiat currencies, have been gaining traction as a payroll solution, especially where inflation is running rampant. They offer a stable medium of exchange, which can help mitigate the nasty effects of currency devaluation. In Argentina, many startups and companies adopted stablecoin salaries to protect their employees from the rapid decline of the peso. Now, European firms are looking at the same approach to enhance their payroll processes.What We Learned from Argentina’s Inflation CrisisArgentina's hyperinflation, hitting a staggering 161% in 2023, forced many companies to switch to paying stablecoin salaries. This was primarily to protect employees from the rapid depreciation of the Argentine peso. By paying in stablecoins like USDC or USDT, businesses ensured that their workers maintained their purchasing power despite the economic chaos. This experience serves as a crucial lesson for Europe, where inflationary pressures may also threaten the stability of local currencies.The Perks of Using Stablecoins for Payroll in EuropeThere are some clear advantages to using stablecoins for payroll in Europe. For starters, stablecoins can facilitate faster and cheaper transactions than traditional banking methods, especially for cross-border payments. They can also promote financial inclusion, giving access to payroll services to those who are often left out of traditional banking. As European companies explore crypto payroll compliance, they can use these advantages to improve their operations and keep their employees happy.Keeping an Eye on Regulations for Crypto Payroll ComplianceOf course, navigating the regulatory maze is a must for businesses thinking about stablecoin salaries. The European Union is developing frameworks to regulate cryptocurrencies, including stablecoins, through initiatives like the Markets in Crypto-Assets Regulation (MiCA). Compliance is key to avoid legal headaches and ensure transparency in payroll processes. Companies should stay informed and adjust their strategies as regulations change.The Risks of Relying on Stablecoins for PayrollWhile stablecoins do come with advantages, there are also risks. One major concern is the potential for de-pegging, where stablecoins lose value relative to their underlying assets during market volatility. This can complicate payroll logistics and possibly leave employees with reduced compensation.The regulatory landscape for stablecoins remains fragmented, making compliance tricky for businesses operating across borders. Plus, security vulnerabilities, like hacks and compromised wallets, are issues organizations need to tackle to protect their employees' earnings.Summary: The Future of Crypto Payroll in EuropeArgentina's experience shows that stablecoin salaries can be a useful tool to protect workers from currency devaluation and make payments more efficient. However, European companies looking to adopt stablecoin salaries should learn from these lessons and balance innovation with regulatory oversight and sound economic policy. By navigating the complexities of crypto payroll compliance, they can leverage stablecoins to improve their payroll systems while securing their employees' financial well-being.The future of crypto payroll in Europe looks bright, but it will take careful thought and consideration of what we learned from Argentina. Embracing stablecoins could not only improve payroll processes but also strengthen the financial ecosystem amid economic uncertainty.

10 Nov, 2025

Bank of England Opens Consultation on ‘Systemic’ GBP Stablecoin Rules With Temporary Holding Limits

The Bank of England has launched a consultation on its proposed regulatory regime for sterling-denominated "systemic" stablecoins and a potential digital pound.Published on Monday, the consultation paper outlines how such stablecoins could operate alongside existing payment systems for both retail and wholesale use. The move builds on reports of the proposal last week and feedback to a 2023 discussion paper, reflecting the bank's aim to modernize payments while maintaining public trust in money, according to a statement.Under the proposals, the regime would apply only to sterling-denominated stablecoins designated as systemic by HM Treasury and used at scale in UK payments — with the Bank of England overseeing prudential and financial stability risks and the Financial Conduct Authority supervising conduct and consumer protection.It does not apply to non-sterling or existing stablecoins used mainly for buying and selling crypto assets, such as USDT and USDC, which will continue to be supervised by the FCA.The bank said the framework is intended to be "robust and future-proof," aligning with broader strategies to modernize UK retail payments.Backing rules and temporary holding limitsA key feature of the consultation is the approach to backing assets. Systemic stablecoin issuers would be allowed to hold up to 60% of reserves in short-term UK government debt, with the remaining 40% placed in unremunerated accounts at the Bank of England to support redemption and public confidence, the bank said.Issuers deemed systemic at launch or transitioning from the FCA regime could initially hold up to 95% of backing assets in short-term government debt to support early-stage viability. The central bank is also considering central bank liquidity arrangements to provide a backstop during periods of market stress.To manage risks from rapid outflows of bank deposits into digital money, the Bank of England has also proposed temporary holding limits of £20,000 ($26,350) per stablecoin for individuals and £10 million ($13.2 million) for businesses, with exemptions for the largest firms to hold more if required. These limits would be lifted once the transition no longer poses risks to credit provision, the bank said, and would not apply to stablecoins used for wholesale settlement within the Digital Securities Sandbox operated by the Bank of England and the FCA."Today's proposals mark a pivotal step towards implementing the UK's stablecoin regime next year. Our objective remains to support innovation and build trust in this emerging form of money," Bank of England Deputy Governor for Financial Stability Sarah Breeden said. "We've listened carefully to feedback and amended our proposals for achieving this, including on how stablecoin issuers interact with the Bank of England. These proposals are fit for a future where stablecoins play a meaningful role in payments, giving the industry the clarity it needs to plan with confidence." The consultation runs until Feb. 10, 2026, with the Bank of England and the FCA set to publish a joint approach paper later next year to clarify how the rules will work in practice and guide a smooth transition.