Laredo Bank Offers Bitcoin Savings Plan For Employees

April 6, 2022 9:07 pm

The growth of the crypto industry has accelerated in recent years despite claims that the digital assets are a risky investment that are prone to scams.

However, the industry is just starting to gain mainstream acceptance as some governments are starting to accept it as payment for services such as taxes.

Large financial institutions which have held negative criticisms against the industry have also reversed their decisions in order to participate in it now.

Finally, to top it all off, a large bank like Laredo Bank is now offering digital assets like Bitcoin to be a part of their employee savings plan.

As a result, this marks a major milestone for Bitcoin itself and the crypto industry as well by extension.

LMTOnline reports:

Laredo’s Vantage Bank is planning to offer a new way for their employees to have a savings plan with the company, as they plan to step away from traditional savings plans — if the employee wishes to do so — in exchange for a digital currency savings plan. The new savings plans work with the most well-known cryptocurrency, Bitcoin.

“The idea for the Bitcoin Savings Plan was something presented to us by one of our partners,” Vantage Bank Chief Human Resources Officer Eric Thompson, EVP said. “It is a program they launched and asked if we would be interested in participating.”

The new program, NYDIG’s Bitcoin Savings Plan, is a simple and secure way for people to invest in Bitcoin.

According to Thompson, the Bitcoin Savings Plan lets employees automatically convert a portion of each paycheck to Bitcoin.

The Bitcoin is then held on NYDIG’s institutional-grade custody platform, which meets the highest security and regulatory standards.

The launch of this new program is actually the first of its kind and could be the start of many other banks and companies incorporating digital assets into their savings plans.

So far, it is the first bank to have such a plan and the company believes that this move will be a major way for the company to attract top talent.

This comes during a time called the “Great Resignation” where many employees are leaving their employers making it difficult for employers to retain talent.

As a result, the Bitcoin savings plans that was just launched by the bank could be something that indicates the start of a very new trend and investors are betting that this will disrupt the savings plan industry which has traditionally only been limited to traditional financial assets.

Chron.com reports:

According to the bank, the implementation of the new savings program reinforces the financial evolution of cryptocurrency and how employers are adapting to offer competitive benefits packages for employees.

Thompson says that although the new savings plan will be offered, the bank continues to offer the traditional saving plans they have always done throughout the years.

“The Bitcoin Savings Plan is just one of the many savings programs we provide our employees,” Thompson said. “All employees have the opportunity to participate in a 401K plan where the bank matches a portion of their contribution as well as an Employee Stock Ownership Plan.”

With this, regulatory agencies may eventually be pressured to enforce regulations that are favorable toward the industry and encourage future crypto growth.

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