What Are Stablecoins?
A stablecoin is a type of cryptocurrency whose value is pegged to something stable—most commonly the U.S. dollar. For example, one unit of USDC or USDT is designed to always be worth about $1.
These coins maintain stability by:
- Being backed by reserves (like dollars in a bank account or U.S. government bonds).
- Using transparent issuance and redemption mechanisms to keep the peg.
👉 You can think of stablecoins as digital cash that moves as easily as email—no physical bills, no banking middlemen, and no borders.
Payroll in a Domestic Setting
If your company and employees are in the same country (e.g., both in the U.S. or both in the U.K.), you likely don’t need stablecoins for payroll.
- Services like Gusto (U.S.) or PayEscape(U.K.) already exists.
- These providers don’t just transfer money—they also handle payroll taxes and compliance.
While stablecoins are cheaper (fees < $0.01) and faster (instant settlement), the tax and compliance support from payroll providers is far more valuable in a domestic context.
Global Hiring: The Real Challenge
Things change when your business wants to hire employees outside your country.
- For full-time employees/contractors, companies often turn to EORs (Employer of Record) or global hiring firms like Deel or Native Teams.
- These providers set up a local entity, ensure compliance, and manage payroll taxes.
- However, the cost is high: $200–$600 per employee per month, plus long setup times.
- For part-time, trial, or short-term collaborations, this may feel too rigid and too expensive.
- This is where stablecoins offer flexibility.
Why Stablecoins Work for Flexible Work
If you just need to pay freelancers, part-time workers, or trial employees:
- Quick Setup: Anyone can create a blockchain wallet in seconds.
- Global Access: Pay anyone, anywhere, anytime.
- Low Fees: Stablecoin transactions typically cost less than $0.01.
⚠️ The biggest challenge is bookkeeping and expense management.
- Traditional software like QuickBooks isn’t designed for crypto payments.
- A solution is to use a wallet + management platform like Mizu, which provides:
- Stablecoin wallets for your business.
- Expense tracking and reporting.
- Easy management of stablecoin transactions.
| Hiring Need | Compliance / Legal Solution | Financial / Payroll Solution | Notes |
|---|---|---|---|
| Domestic full-time employees | Standard employment contracts; follow local labor/tax laws | Local payroll software or providers (e.g., Gusto in US, Sage in UK) | Best option for same-country hires; providers handle taxes, benefits, and filings |
| International full-time employees | Employer of Record (EOR) or global hiring platforms (e.g., Deel, Remote, ADP Global) | Payroll + tax compliance bundled into the EOR service | High cost ($200–$600/employee/month) but ensures full legal compliance |
| Freelancers / contractors (short-term, part-time, or trial work) | Service agreements/contracts; lighter compliance needs (no local entity required) | Direct stablecoin payments, managed with Mizu for tracking and reporting | Cheap and fast (<$0.01 per transaction); Mizu helps solve the bookkeeping gap |
Final Thoughts
Whether or not stablecoins make sense for your payroll depends on your business model, employee location, and compliance requirements:
- Stick with traditional payroll providers for domestic employees and compliance-heavy scenarios.
- Use EOR/global platforms when hiring permanent international employees.
- Consider stablecoins (with Mizu) for freelancers, trial hires, or flexible work arrangements—where speed, cost, and global accessibility matter more than heavy compliance overhead.
👉 In the end, stablecoins aren’t here to replace payroll systems entirely, but they fill a critical gap for small businesses that need a fast, borderless, and affordable way to pay global talent.
