Article 4 of the Wage Protection Act mandates that wages must be paid in the currency legally recognized in Belgium where the employee is working. Currently, Bitcoin or any other cryptocurrency does not qualify as a legally recognized currency in Belgium, making it impossible to pay an employee’s salary in Bitcoin if they are employed within the country.
The judiciary takes a particularly strict stance on this principle. For instance, the Council of State ruled in 1993 that replacing a year-end bonus with meal vouchers was in violation of Article 4, as meal vouchers are not considered legal currency in Belgium and can only be used for specific purchases like food in designated stores.
Additionally, Article 5 of the Wage Protection Act requires that wages be paid electronically, which typically means payment through bank transfers. This raises the question of whether a Bitcoin transaction via blockchain could be classified as a valid transfer.
However, the second paragraph of Article 4 states that if an employee works abroad, their salary must be paid in the currency legally recognized in Belgium or in the currency legally recognized in the country where they are working, if the employee requests it. Therefore, a Belgian employee working in El Salvador might have the option to be paid in Bitcoin.
In a ruling dated October 22, 2015, the European Court of Justice responded to a preliminary question from the Swedish Supreme Administrative Court by deciding that Bitcoin can be traded without VAT, indicating its status as a legitimate means of payment. However, just because Bitcoin is considered a legitimate payment method does not mean it is legally recognized as currency in Belgium.
…But a Legislative Framework is Needed.
At present, paying salaries in Bitcoin remains an unlikely prospect in Belgium.
Nevertheless, some Belgian employers report frequent requests from employees to be paid in Bitcoin or other cryptocurrencies. Advocates argue that blockchain has consistently proven to be a secure method for financial transactions. On the other hand, the volatile nature of Bitcoin and other cryptocurrencies is a significant concern. Their value can fluctuate drastically from one day to the next, while the cost of necessities like food, clothing, and shelter remains stable, potentially leading to financial instability.
Despite these concerns, lawmakers should consider establishing a regulatory framework as cryptocurrencies continue to grow in number and usage, and more people engage in cryptocurrency transactions. Large companies, such as Tesla, Amazon, and Microsoft, already accept Bitcoin payments, signaling a broader acceptance that might eventually necessitate legal guidelines.
