Crypto Dominates as Payment Method for Remote Workers in Latam
According to the latest Deel Lab for Global Employment report, the majority of remote workers in Latin America prefer to be paid in cryptocurrencies. The reasons for this discovery are said to be varied but include the instability of some local fiat currencies and the impact of high inflation in the region.
Remote workers prefer to be paid with cryptocurrencies in Latin America
According to report According to Deel Lab for Global Employment, most remote workers in Latham prefer to be paid in cryptocurrencies, adding to the popularity of this payment method among local freelancers. The use of cryptocurrencies for payments in the region has grown from 61% to 64% during 2022, which is more than double the use of these instruments compared to the second region. EMEAseen at 27%.
According to the report, the reasons for this preference for crypto overshadowing use in other markets has to do with the idiosyncrasies of the region and how these workers use their resources to circumvent their economic conditions. Even with the recent price drop in the crypto market, receiving payments in crypto allows workers in Latin America to easily move that liquidity into non-fiat savings assets or more profitable options.
This was stated by Natalia Jimenez, Deel regional manager:
Phenomena such as inflation, the depreciation of the local currency, and others have caused workers to need to diversify their incomes and take care of their savings. Getting their salary or part of it in cryptocurrencies allows them to protect themselves from exchange rate fluctuations, invest and have more flexibility in their finances.
The report found that Bitcoin is the favorite cryptocurrency for accepting payments, accounting for 64% of all transactions. USDC, Circle’s dollar-pegged stablecoin, comes in second with 26%, while Ethereum comes in third with 7%.
Other markets reacted differently
While cryptocurrencies as a payment method have grown in Latin America, other markets have not followed suit due to the fall in the crypto market, which is prevalent in regions with more advanced payment structures using fiat currencies that are not heavily dependent on cryptocurrencies for remittances and savings. products.
The report acknowledges this fact, stating that “given the situation in the cryptocurrency market, workers have lost interest in receiving payments in cryptocurrencies.” This may be due to the use of cryptocurrencies in Latin American markets, which, according to a report published in August by Kaiko, is more focused on real applications than other markets.
What do you think about the popularity of cryptocurrencies as a payment method for remote workers in Latin America? Tell us in the comments section below.
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