Crypto Dominates as Payment Method for Remote Workers in Latam –
According to the latest report from Deel Lab for Global Employment, most of the teleworkers in Latam prefer to be paid in crypto. The reasons for the finding are said to be varied but include the instability of some local fiat currencies and the influence of the high inflation in the region.
Remote workers prefer to be paid with crypto in Latam
According to a report by Deel Lab for Global Employment, most teleworkers in Latam prefer to work in cryptocurrency getting paid, which increases the popularity of this payment method among freelancers in the region. The region’s use of crypto for payments grew from 61% to 64% in 2022 — more than double the use of these tools in the second region, EMEA, at 27%.
The reasons for this preference for crypto, which eclipses its use in other markets, have to do with the region’s specifics and how these workers use their resources to circumvent their economic conditions, according to the report. Even with the recent price drop in the cryptocurrency market, receiving payments in cryptocurrency allows workers in Latam to easily shift that liquidity to non-fiat based savings or more profitable options.
Natalia Jimenez, Regional Manager at Deel, explained:
Phenomena such as inflation, devaluation of local currencies and others have created a need for workers: to diversify their income and take care of their savings. By receiving their salaries or part of them in cryptocurrencies, they can protect themselves from fluctuating exchange rates, invest and have more flexibility with their finances.
The report found that Bitcoin is the most popular cryptocurrency for receiving payments, accounting for 64% of all transactions. USDC pegged to the dollar stablecoin by Circle, ranked second with 26% and Ethereum third place with 7%.
Other markets have reacted differently
While crypto has grown as a payment method in Latam, other markets have not followed closely due to the decline of the cryptocurrency market prevalent in regions with more developed payment structures using fiat currencies that do not heavily depend on crypto for remittances and savings products.
The report acknowledges this fact, noting that “Given the situation in the crypto market, workers have lost some interest in receiving payments in cryptocurrencies.” This could be related to the usage crypto is seeing in Latin American markets, which is more focused on real-world applications than the investment-speculative notion of crypto in other markets, according to a report by Kaiko released in August.
What are your thoughts on the popularity of cryptocurrency as a payment option for remote workers in Latam? Tell us in the comment section below.
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Source: Crypto News Deutsch
