Residents of nations with volatile economies are more likely to be paid in cryptocurrenciesaccording to the global recruitment platform Deel.
In its “State of Global Hiring Report” shared with Cointelegraph on Thursday, the firm found that Despite the 2022 bear market, cryptocurrencies accounted for 5% of all global payments withdrawn from the platform each month, up from 2% in the second half of 2021.
Residents of nations with volatile economies and currencies were the most likely to make their payments in cryptocurrencies, according to the report. These included countries in Latin America (LATAM) and Europe, the Middle East and Africa (EMEA).
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 lower, at just 2% of the total.
Regarding the type of asset, bitcoin (BTC) remained the preferred cryptocurrency, with 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 that, overall, “we find that people typically only withdraw part of their payment in crypto, which could mean they are still using it as a long-term investment vehicle as well”before adding:
“From what we have seen, getting paid in crypto is most attractive to three main groups of people: those who use the tool to protect themselves from local currency instability, those who work in jurisdictions with antiquated local banking systems that can slow down payroll and those who are adding 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.”
Deel obtained the data of more than 100,000 cross-border worker contracts on the platform between January and July 2022. The company helps companies hire and pay people in different countries. He pointed out that LATAM tops the list of regions that hire internationally.
Rising inflation is a concern for many countries in the Latin American region. Venezuela, Argentina, Chile, Brazil and Paraguay have double-digit inflation, according to Trading Economics.
The decline in purchasing power with their own fiat currencies is likely to have influenced the rise in cryptocurrency payments to workers in the region..
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.