According to a new report from Deel Lab for Global Employment, most remote workers in Latin America prefer to receive compensation in cryptocurrencies for various reasons, but the reasons include the unstable exchange rate of local fiat currencies and the impact of high local inflation.
The report notes that the majority of remote workers in Latin America prefer to be paid in cryptocurrencies, reinforcing the popularity of this form of payment among local freelancers. During 2022, the rate of salaries paid in cryptocurrencies in Latin America will increase from 61% to 64%, which is much higher than the second region that prefers to use cryptocurrencies as a salary payment tool, Europe, the Middle East and Africa (EMEA). ), the above ratio for this region is 27%.
Latin America’s love for working in cryptocurrencies is much higher than in other regions, and the reason is related to the special local situation and the fact that these workers use their resources to circumvent the local economic conditions. Even with the recent drop in cryptocurrency market prices, opting to be paid in cryptocurrency could make it easier or more profitable for Latin American workers to move funds into non-fiat savings assets.
Natalia Jimenez, regional director of Deel Lab, said: “Conditions such as inflation and devaluation of local currencies create a need for workers to diversify their income and take care of their savings. Get paid in cryptocurrency or part of their salary, allowing them to insulate from currency fluctuations, invest and have more financial flexibility.”
The report found that Bitcoin was the most popular cryptocurrency option for getting a salary, accounting for 64% of all transactions; Circle’s U.S. dollar stablecoin USDC came in second with 26% and ethereum with 7%. Ranked third.
Although the popularity of cryptocurrencies as a payment tool in Latin America has increased, other markets have not followed suit due to the decline in the cryptocurrency market over the past year. Moreover, most regions have more developed payment financial systems based on fiat currencies. Significant reliance on cryptocurrencies as remittance and savings products.
Latin American workers prefer to receive cryptocurrencies as salaries, which may also be related to the use of cryptocurrencies in the Latin American market. According to a Kaiko report published in August last year, Latin America is more concerned with the global practical application of cryptocurrencies, rather than using cryptocurrencies as a speculative tool like other countries. Despite the growth in some aspects, the researchers also admitted in the report that the decline in the cryptocurrency market has caused some workers to lose some interest in receiving wages in cryptocurrency.