Workers in volatile economies most likely to be paid in crypto: report

Residents of nations with volatile economies are more likely to be paid in cryptocurrenciesaccording to global recruitment platform Deel.

The company made that clear in its State of Global Hiring Report submitted to Cointelegraph on Thursday Despite the bear market in 2022, cryptocurrencies accounted for 5% of all global payments withdrawn from the platform each month, up from 2% in the second half of 2021.

Residents in countries with volatile economies and currencies were most likely to make their payments in cryptocurrencies, according to the report. These included countries in Latin America (LATAM) and Europe, Middle East and Africa (EMEA).

Workers in volatile economies most likely to be paid in crypto: report
Workers in volatile economies most likely to be paid in crypto: report

Cryptocurrency withdrawals in the LATAM region accounted for 67% of the total and EMEA countries for 24%. Those from the North American region accounted for just 7% of total crypto payments. The Asia-Pacific region was even smaller, accounting for just 2% of the total.

Regarding the type of wealth, Bitcoin (BTC) remained the preferred cryptocurrency at 47% of the total. The second-choice digital asset for payments was Circle’s USD Coin (USDC) at 29%, followed by Ether (ETH) at 14%. Tether (USDT) did not make the list.

Shannon Karaka, head of ANZ expansion at Deel, told Cointelegraph: Overall, “we found that people typically only withdraw a portion of their payment in crypto, which could mean they’re still using it as a long-term investment vehicle as well.”before you add:

“From what we’ve seen, getting paid in cryptocurrencies is more attractive to three main groups of people: those using the tool to protect themselves from local currency instability, those living in jurisdictions with outdated local Banking systems work that can slow down payroll and those who add some cryptocurrencies to their investment portfolio. Most of our cryptocurrency withdrawals come from LATAM and EMEA, which is likely due to the first two use cases.”

Between January and July 2022, Deel received the data of more than 100,000 cross-border employment contracts on the platform. The company helps companies hire and pay employees in different countries. He pointed that out LATAM tops list of regions hiring internationally.

Rising inflation is worrying many countries in Latin America. According to Trading Economics, Venezuela, Argentina, Chile, Brazil and Paraguay have double-digit inflation rates.

Declining purchasing power with their own fiat currencies is likely to have influenced the increase in cryptocurrency payments to workers in the region.

Clarification: The information and/or opinions expressed in this article do not necessarily reflect the views or editorial line of Cointelegraph. The information contained herein should not be construed as financial advice or investment recommendation. All investment and trading movements involve risk and it is the responsibility of each person to conduct their proper research before making any investment decision.

Similar Posts