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Crypto dominates as payment method for remote workers in Latam – Bitcoin News
Most remote workers in Latam prefer to be paid in crypto, according to the latest report by Deel Lab for Global Employment. The reasons behind the finding are said to be diverse, but include the instability of some of the local fiat currencies, and the influence of high inflation levels in the region.
Remote workers prefer to be paid with Crypto in Latam
According to a report by Deel Lab for Global Employment, most remote workers in Latam prefer to be paid in cryptocurrency, which reinforces the popularity of this payment method among freelancers in the area. The use of crypto for payments in the region rose from 61% to 64% during 2022 – more than double the use of these tools which the other region, EMEA, saw at 27%.
The reasons behind this preference for crypto, dwarfing its use in other markets, have to do with the region’s peculiarities and how these workers use their resources to circumvent their financial circumstances, according to the report. Even with the recent drop in prices in the cryptocurrency market, receiving payments in cryptocurrency allows Latam workers to easily move this liquidity to non-fiat savings or more profitable alternatives.
About this, Natalia Jimenez, regional manager of Deel, stated:
Phenomena such as inflation, weakening of local currencies, among others, have created a need for workers: to diversify their income and take care of their savings. Receiving their salary, or part of it, in cryptocurrencies allows them to hedge against fluctuating exchange rates, invest and have greater flexibility in the economy.
The report found that bitcoin is the favorite cryptocurrency to receive payments, accounting for 64% of all transactions. USDC, Circle’s dollar-pegged stablecoin, is second with 26%, and ethereum is third with 7%.
Other markets have reacted differently
While crypto as a payment method in Latam has grown, other markets have not exactly followed suit due to the slowdown in the cryptocurrency market prevailing in regions with more developed payment structures that use fiat currencies, which do not rely heavily on crypto for money transfers and savings. Products.
The report acknowledges this fact, saying that “given the crypto market situation, workers have lost some interest in receiving payments in cryptocurrencies.” This may be related to the use that crypto is seeing in the Latam markets, which is more focused on real-world applications according to a report released in August by Kaiko, versus the investment speculative notion of crypto in other markets.
What do you think about the popularity of cryptocurrency as a payment option for remote workers in Latam? Tell us in the comments section below.
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