Chinese businesses has been prohibited from paying workers in Tether’s Stablecoin, USDT after a labor dispute.
According to reports, a Chaogyang court in China has ruled that digital currency should not & cannot be circulated in the market as a currency. This was as a result of a labor dispute between one Mr. Shen, the vice president of products of a network technology company and two shareholders.
Mr. Shen sued the shareholders for paying him in USDT. After deducting social security & product funds, his actual salary was reportedly paid in the form of RMB and USDT.
In response to the lawsuit, one of the shareholders, Hu said that the company had paid the salary in USDT according to Mr. Shen’s statement.
Mr. Shen asked the company to pay the arrears of wages and bonuses in RMB, but Hu insisted on using cryptocurrency. This made the court to issue ban on the use of virtual currency.
China is one of the several nations of the world where crypto is not accepted. In fact, the Asian country banned crypto mining activities in 2021 which shook the crypto industry. However, China is trying to promote its own virtual currency called eCNY.