China bans the use of cryptocurrencies for wages

The Beijing People’s Court has banned employers from paying salaries to employees in stablecoins such as USDT — all because of the outrage of a local resident.

According to journalists, an employee of a blockchain company filed a lawsuit against his management because he received his salary and bonuses in USDT. According to the plaintiff, the company refused to pay him in fiat currency.

As a result, the court decided to prohibit the use of stablecoins for payment, as they «are not legal tender in China». Now, according to the court ruling, the employers are obliged to pay the plaintiff more than 270,000 yuan (about $ 40,240) in salary and bonuses.

As a reminder, Chinese society has different views on the use of virtual assets and their future in general. For example, Chinese banks allow receiving a percentage of their assets in the central bank’s digital currency. And the CEO of Red Date Technology, which develops the largest Chinese blockchain, Blockchain Service Network (BSN), believes that all unregulated cryptocurrencies, including bitcoin, are Ponzi schemes based on market capitalization and the number of users.