Most remote workers in Latam prefer to get paid in crypto, according to the latest report from the 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 levels of inflation in the region.
Remote Workers Prefer to Be Paid With Crypto in Latam
According to a report from the Deel Lab for Global Employment, most remote workers in Latam prefer to be paid in cryptocurrency, reinforcing the popularity of this payment method among freelancers in the area. The usage of crypto for payments in the region went up from 61% to 64% during 2022 — more than double the usage of these tools that the second region, EMEAsaw at 27%.
The reasons behind this preference for crypto, dwarfing usage in other markets, have to do with the particularities of the region and how these workers use their resources to sidestep their economic conditions, according to the report. Even with the recent fall in prices in the cryptocurrency market, receiving payments in cryptocurrency allows workers in Latam to move this liquidity easily into non-fiat-based saving assets or more profitable options.
On this, Natalia Jimenez, regional manager at Deel, stated:
Phenomenas such as inflation, the depreciation of local currencies, among others, have created a need for workers: to diversify their income and take care of their savings. Receiving their salaries, or part of them, in cryptocurrencies, allows them to shield themselves from fluctuating exchange rates, invest and have greater flexibility in their finances.
The report found that bitcoin is the favorite cryptocurrency for receiving payments, accounting for 64% of all transactions. USDC, Circle’s dollar-pegged stablecoin, ranks second at 26%, and ethereum ranks third at 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 downfall in the cryptocurrency market that prevails in regions with more developed payment structures using fiat currencies, which do not depend heavily on crypto for remittances and savings products.
The report recognizes this fact, stating that “given the crypto market situation, workers have lost some interest in receiving payments in cryptocurrencies.” This might be related to the usage that crypto sees in Latam markets, which is focused more on real-world applications according to a report issued 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 comment section below.
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