While many may think that getting paid in gold instead of real cash means going back into time from the modern economic system. However, one financial services company based out of London in the UK and its CEO think this is the best way to support employees amid today’s volatile financial scenario.
As part of a trial project for the new mode of salary, London-based TallyMoney is offering its employees a package where their remuneration will be received in gold instead of money. In fact, CEO Cameron Parry reportedly believes that paying cash as salary doesn’t make sense anymore.
The company which has a relatively small workforce of 20 plus may be an ideal setting for such an experiment. Talking to London-based newspaper City A.M., Parry said that pay hikes in pounds, the currency in the UK, does not make financial sense in today’s situation where the cost of living has skyrocketed into a crisis. He thinks paying in cash is not ideal in a scenario where the value of the currency is eroding with each day, calling it similar to “putting a band-aid over an open wound”.
“Gold is a time-tested inflation hedge and has maintained its purchasing power for millennia. At times like these, when conventional money is steadily losing its buying power, gold offers people the best chance of keeping ahead of inflation,” he reportedly said.
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The new scheme’s pilot phase involved senior officials of the company and now it plans to expand the policy on offer across the organisation. However, going for a salary in gold is optional and employees can continue to receive their payouts in currency.
It should be noted that getting paid in gold won’t mean that employees will actually have to carry pieces of the precious metal with them. Instead, they will be able to withdraw cash as per the exchange rate at the time for gold to pounds.
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In TallyMoney’s services, a digital asset is offered called tally, which is equal to one milligram of gold. So instead of their salary enumerated in British pounds, employees will receive a figure in mg of gold. This may seem to some like an affair similar to cryptocurrencies, but as per the boss of the company, his salary scheme with gold makes more sense.
