KPMG is advising a blockchain-based payroll provider as it gears up for an initial coin offering (ICO) on 18 October 2017
Etch is a blockchain-based payroll system that allows employers to pay workers second by second. The start-up is raising £5m to develop the platform.
KPMG is also advising on the best business practice for the current ICO phase, encompassing valuations, tax implications, risk framework, governance and controls.
Recipients of the Etch technology will be paid in the currency of their choice and can arrange for part payment to a family member at home or abroad. It uses a payroll card that will be accepted worldwide. Additionally, the system allows those who do not have bank accounts to be paid securely.
Etch is the first approved decentralised app created with the support of the London-based Construction Blockchain Consortium, a representative group for UK-based companies using blockchain technology.
The Etch platform is particularly targeting the construction industry where the payment system can be complex and late payments can damage otherwise successful businesses.
Chris Mills, head of blockchain for KPMG UK said: ‘Etch is a superb initiative because it provides guaranteed payments in real-time for all work completed, something that no other platform is currently known to achieve.
‘There are clear and immediate benefits, particularly for low and average income workers, who make up the clear majority of the population.’
Etch founder Euros Evans said: ‘When people are being paid as soon as they’ve earned it, we can reduce the need for payday loans and other such instruments to plug spending gaps, as well as improving employees’ peace of mind.
‘We will use Ethereum blockchain technology to unify payroll and remittance services to create a platform that not only benefits employees, but reduces business inefficiencies, saving them time and cost in payroll.’
Ethereum is the most commonly used blockchain after the one used by Bitcoin.
Report by Calum Fuller