Economic Turmoil and Crypto Solutions
In regions where economic stability is as rare as finding a needle in a haystack, a new trend is emerging—paying employees in cryptocurrency. Deel’s latest report highlights how individuals in nations burdened by volatile economies are increasingly opting for crypto over traditional fiat currency.
Growth of Crypto Payments
Despite the 2022 bear market, the momentum behind crypto payments has not only persisted but also surged. As of now, 5% of all global payments made through Deel originated in crypto, a significant rise from 2% a year prior. This trend seems to be most pronounced in Latin America, where the crypto payment share has skyrocketed to a remarkable 67%. Talk about a bullish market response!
Geographic Breakdown
The statistics speak for themselves:
- Latin America (LATAM): 67% of crypto withdrawals
- Europe, the Middle East, and Africa (EMEA): 24%
- North America: 7%
- Asia Pacific: 2%
If you’re keeping your crypto wallet in North America or Asia Pacific, it might be time for a geographic change—or at least some financial envy.
Top Cryptos for Payroll
When talking about preferences in the crypto world, Bitcoin (BTC) remains the king, claiming 47% of the withdrawal share. In a close second, Circle’s USD Coin (USDC) takes 29%, while Ethereum (ETH) rounds out the top three at 14%. Meanwhile, Tether (USDT) appears to have lost its invitation to the party. Perhaps it was too busy being stable?
Who’s in It for Crypto?
Shannon Karaka, Deel’s head of expansion in Australia and New Zealand, pointed out that many people are still using cryptocurrencies partly as investments. The allure of getting paid in crypto seems most attractive to:
- Individuals hedging against local currency instability
- Workers in regions avec outdated banking systems
- Investors diversifying into cryptocurrency
When your local currency is struggling, it’s hard to blame folks for swapping to something a little more resilient.
The Latin American Crisis
Why the sudden spike in crypto payments in LATAM? Surging inflation is a substantial player here. With countries like Venezuela, Argentina, and Brazil facing crippling inflation rates often over 10%, the diminishing purchasing power of local currencies is driving workers to seek compensation in more stable assets. If you find your wallet isn’t buying you as much as it used to—hello, Bitcoin!
The Last Word
It looks like despite the dizzying ups and downs of the crypto market, for many, it remains a necessary escape route from the constraints of local currencies. As regions grapple with inflation and currency instability, the trend of receiving payments in cryptocurrencies seems here to stay—at least until the next market rollercoaster arrives.
