Blockchain Applications and the War for Talent
Blockchain is in the news again, as cryptocurrencies, the technology’s most well-known application, have gained momentum as a mainstream asset class. Companies with a bullish view on cryptocurrencies — such as Microstrategy, Square, and Tesla — have announced the acquisition of Bitcoin for their balance sheets. Traditional financial institutions such as Bank of New York Mellon are beginning to hold, transfer, and issue Bitcoin on behalf of asset management clients. The European Central Bank has announced proposals to launch a digital euro.
Cryptocurrencies tend to draw the most attention, but it is important to acknowledge the utility of broader blockchain applications, such as secure data-sharing, smart contracts, and cybersecurity. New and emerging blockchain-enabled technology solutions will enable more progressive ways of designing employee rewards and more effective ways of managing employees and contractors. As companies seek to gain a competitive edge emerging from the global pandemic, blockchain technology can be a tool for employers to differentiate themselves and win the war for talent.
Paying employees in Bitcoin has gone from an urban legend to a bleeding-edge practice. Several athletes are looking to be paid in Bitcoin, and the City of Miami passed a resolution to pay workers in the cryptocurrency. Some companies, in addition, are using Bitcoin and other established cryptocurrencies as an additional instrument to reward employees.