Workers In Unstable Economies Are More Inclined To Accept Cryptocurrency Payments: 2022 Report

Workers in unstable economies are more inclined to accept cryptocurrency payments

Deel, a worldwide recruiting platform, claims that residents of countries with unstable economies are more likely to get paid in cryptocurrency.

Despite the 2022 bear market, the company reported in its “State of Global Hiring Report” that crypto accounted for 5% of all global payments withdrawn from the platform each month, up from 2% in the second half of 2021.

The survey found that people from countries with unstable economies and currencies were more likely to use cryptocurrencies for their payments. These comprised nations in the Middle East, Africa, and Latin America (LATAM) (EMEA).

LATAM countries accounted for 67% of all cryptocurrency withdrawals, while EMEA countries made up 24%. Just 7% of all cryptocurrency payments were made by people in the North American area. Even worse, the Asia-Pacific area only made up 2% of the total.

With 47% of the market, Bitcoin (BTC) continued to be the most popular digital asset. Circle’s USD Coin (USDC), which had a 29% market share, came in second place, and was followed by Ether (ETH), which had a 14% market share. The list does not include Tether (USDT).

Shannon Karaka, head of expansion ANZ of Deel said:

“We find that people typically only withdraw part of their pay in crypto, which could mean they are still using it as a long-term investment vehicle as well,”

“From what we’ve seen in the field, getting paid in crypto is most attractive to three main groups of people: those who use the tool to hedge against local currency instability, those working in jurisdictions with dated local banking systems that can slow down payroll and those who are adding some crypto coin to their investment portfolio. The majority of our crypto withdrawals are coming out of LATAM and EMEA, which is likely driven by the first two use cases.”

Between January and July 2022, Deel collected the data from over 100,000 cross-border worker contracts on the platform. The company helps firms in legally hiring, onboarding, and paying employees abroad. It was noticed that LATAM topped the list of foreign hiring regions.

Many Latin American nations are concerned about the region’s rising inflation rate. A double-digit inflation rate is present in Venezuela, Argentina, Chile, Brazil, and Paraguay, according to Trading Economics.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Hazel

CoinCu News