Why does Storj pay Storage Node Operators in USDC instead of USD?

In many countries, receiving foreign currency as a payment may be prohibited by local laws unless you are a legal entity. There are a lot of restrictions around fiat.

At the time this article was published we had storage node operators located in 94 countries (http://storjnet.info/), so it would be nearly impossible to comply with all local requirements to send fiat USD to Operators.

Another problem is that sending international wire transfers is usually very slow and frequently involves very costly transaction fees. Even after paying the high fees, the transfer may still fail, get lost or be rejected.

Paying in USDC avoids most of these problems while keeping the value of your payout in US dollars. USDC is a stablecoin designed to hold a value of one US dollar, so your payout is not exposed to the price swings of other cryptocurrencies. You would need to consult with a local attorney and your tax office regarding any local legal requirements around cryptocurrencies. We do not guarantee that receiving USDC is allowed in your country.

The USDC you earn for sharing your hard drive and bandwidth can also be used to pay for Storj storage for your own files.