Employees want to be paid in crypto, report shows

Cryptocurrencies account for 5% of all global payments withdrawn monthly, according to payroll and compliance provider Deel’s 2022 State of Hiring Report.

The survey, which gathered results from over 100,000 contract workers worldwide, found that crypto payments are most attractive to three dominant groups of people: people who use cryptocurrencies as a hedge against local currency instability, those whose outdated local banking systems slow down their pay, and people who are adding cryptocurrencies to their investment portfolio.

Countries in Europe, the Middle East and Africa (EMEA) and Latin America were more likely to fall into the first two scenarios, according to the survey. Latin America accounts for 67% of crypto withdrawals, and the EMEA region accounts for 24%.

Another report, conducted by the payment protocol Ripple, found that 74% of Latin Americans are more likely to shop with businesses that accept crypto.

“[Latin American] and EMEA are both regions that have historically experienced periods of significant monetary turbulence, fintech platform Banxa CEO Holger Arians told Blockworks.

“Year-long periods of hyperinflation in countries ranging from Venezuela to Turkey have created lasting and serious consequences for consumers who are forced to watch their purchasing power go up or down based on the decisions of their central bank,” he said.

For many of these individuals, cryptocurrencies become a clear currency alternative as they are not held by any central authority and give consumers the ability to transact autonomously, Arians said.

“Their growing utility and long-term promise — along with this growing use, even in developing parts of the world — is a clear indication of the need to build infrastructure that allows consumers to buy, sell and trade cryptocurrencies,” Arians said.

Offering cryptocurrency payments also benefits many employers, Dan Westgarth, chief operating officer at Deel, told Blockworks.

“As economic uncertainty makes different coins appeal to different markets, digital banking helps workers get paid amid political instability,” Westgarth said.

“The alternative is more attractive than ever to employers.”

Despite bitcoin’s volatility, especially recently, it remained the most popular crypto payment for Deel customers, accounting for 47% of currency withdrawals this year, followed by USD Coin, which accounted for 29% of withdrawals.

According to Arians, bitcoin’s dominance can be attributed in part to its head start. “For many years, bitcoin had first-mover advantage as the only decentralized digital asset before the alternatives came along,” he said.

Bitcoin’s legitimacy has been further strengthened in recent years, as many businesses now support it as a means of payment. Major technology companies including Microsoft, PayPal and Visa all accept bitcoin transactions.

“Consumers have used bitcoin as a store of value since its inception, and its current level of ubiquity demonstrates bitcoin’s clear staying power,” Arians said.

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