According to a recent report by Deel Lab for Global Employment, most remote workers in Latam prefer to receive payments in crypto. The reasons behind this finding are said to be varied, but include the instability of some local fiat currencies and the effects of high levels of inflation in the region.
Remote workers prefer to be paid in crypto in Latam
According to areportby Deel Lab for Global Employment, most remote workers in Latam prefer to be paid in cryptocurrency, and this payment method is growing in popularity among freelancers in the region. The use of crypto in payments in this region rose from 61% to 64% during 2022, more than double the use of these tools in the second largest region,EMEAwhere the rate was 27%. was 27%.
This preference for crypto and lower usage in other markets is reportedly related to the specifics of the region and how these workers use their resources to circumvent economic conditions. The recent drop in the value of the cryptocurrency market shows that by getting paid in cryptocurrency, latam workers can easily move this liquidity into non-fee-based savings assets or more profitable options.
In this regard, Natalia Jimenez, Deel’s regional manager, stated.
Phenomena such as inflation and the depreciation of the local currency have created a need for workers: to diversify their income and value their savings. By receiving a portion of their salary in cryptocurrency, they can protect themselves from exchange rate fluctuations, 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, the circle’s dollar-pegged stablecoin, ranks second at 26%, and Ethereum is third at 7%.
Other markets have reacted differently
While crypto as a means of payment for latam is growing, other markets are not necessarily following suit due to the decline in the cryptocurrency market, which is prevalent in regions with more developed payment structures using fiat currencies that do not rely heavily on crypto for remittances and savings products.
The report acknowledges this fact, stating that “given the state of the crypto market, workers have lost some interest in receiving payments in cryptocurrencies.” This may be related to the fact that the uses for which crypto is seen in the latam market are more focused on real-world applications, as opposed to the investment speculative concept of crypto in other markets, according to a report issued by Kaiko in August.
What do you think about the popularity of cryptocurrencies as a payment option for remote workers in Latin America? Let us know in the comments section below.