New ruling will come into effect on 1st September

New Zealand has become the first country to authorise cryptocurrency salaries, according to a report from the Financial Times.

A ruling issued by the country’s tax agency has confirmed that salaries and wages can now be paid in cryptocurrencies. The only caveat is that the digital coin must be pegged to a fiat currency.

New Zealand also requires that the crypto of choice be directly convertible into a standard form of payment.

This paves the way for Bitcoin, the largest and most well-known cryptocurrency to potentially serve as a form of payment for New Zealand workers when the law goes into effect in September.

The decision was originally filed on August 7 and also detailed New Zealand's plans to allow for bonuses to be paid in cryptocurrency. The salary option will still fall under the nation's income tax scheme, and the ruling excludes self-employed workers from switching their income to cryptocurrency.