Crypto Dominates as Payment Method for Remote Workers in Latam – According to a report from the Deel Lab for Global Employment, the majority of remote workers in Latam prefer to be paid in cryptocurrency, reinforcing the currency’s popularity among freelancers in the region. The region’s use of cryptocurrency for payments increased from 61% to 64% in 2022, more than doubling the usage of these tools seen in the second region, EMEA, which was 27%.
According to the report, the reasons for this preference for crypto, which dwarfs usage in other markets, have to do with the region’s distinctive features and how these workers use their resources to circumvent their economic circumstances. Despite the recent drop in cryptocurrency prices, receiving payments in cryptocurrency allows workers in Latam to easily transfer this liquidity into non-fiat-based saving assets or more profitable options.
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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.”
According to the report, bitcoin is the most popular cryptocurrency for receiving payments, accounting for 64% of all transactions. USDC, Circle’s dollar-pegged stablecoin, comes in second at 26%, followed by ethereum at 7%. While crypto as a payment method has grown in Latin America, other markets have not exactly followed suit due to the downturn in the cryptocurrency market that exists in regions with more developed payment structures based on fiat currencies that do not rely 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.
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