Crypto Dominates as Payment Method for Remote Workers in Latam

Crypto Dominates as Payment Method for Remote Workers in Latam

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 amongst 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, EMEA, saw 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: Phenomena 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. Tags in this story Bitcoin, Cryptocurrency, deel, Devaluation, Diversification, inflation, Kaiko, latam, natalia jimenez, payment, Remote Workers

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. Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. Ordinal Inscription Collections on Bitcoin Blockchain Grow as Creators Monetize Art NEWS | 9 hours ago Russia’s Yandex Search Engine Adds Cryptocurrencies to Its Converter NEWS | 14 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleEnd of an Era for the Seasonal Tokens Economy: Summer Tokens to Become Scarcer Next articleBitcoin, Ethereum Technical Analysis: Bitcoin Hits $25,000, Following Moving Average ‘Death’ Cross Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin