The global political and economic tensions have led to an increasing number of people opting to receive their salaries in cryptocurrencies like Bitcoin (BTC), as reported by experts in the human resources industry. The use of cryptocurrencies and stablecoins as a form of salary payment has been steadily growing over the past few years. This trend is not only influenced by high-profile individuals such as athletes and politicians choosing to receive their pay in crypto but also by ordinary people seeking to hedge against various forms of instability.
Michael Brooks, the co-founder and CEO of goLance, explained that several factors have contributed to the surge in crypto salaries. These factors include the growing acceptance of cryptocurrencies as a legitimate payment method, increased education about cryptocurrencies, and new technological developments. Additionally, economic conditions in different parts of the world have played a significant role in driving the adoption of crypto payments. Regions facing political instability, hyperinflation, or restrictive financial systems have seen a notable increase in the usage of cryptocurrencies as an alternative means of conducting transactions.
Brooks revealed that goLance, a freelancing platform, saw significant growth in crypto payouts. In 2021, less than 5% of goLance’s payouts were in crypto. However, this percentage grew to nearly 10% in 2022 and is projected to reach 17% in 2023. Among the freelancers who choose to be paid in crypto, an average of 17.5% of their payments are in crypto, while the remaining 82.5% is in fiat currency.
The chief operating officer at the human resources and payroll platform Deel, Dan Westgarth, added that the increasing political and economic instability around the world has led to a rise in employees globally choosing to receive their wages in crypto. This is especially true in countries with sharp fluctuations in local fiat currencies, as stablecoins like USD Coin (USDC) offer a more attractive alternative. Westgarth specifically highlighted the Caribbean region, where outdated banking systems result in long waiting periods, payment delays, and high banking withdrawal fees, which can all be avoided by using cryptocurrencies.
In terms of the regional breakdown of crypto salary withdrawals, Deel reported that Latin America accounted for the largest share, with 54% of all crypto withdrawals on the platform between January and May of 2023. Europe, the Middle East, and Africa collectively accounted for 38% of crypto withdrawals during the same period. Meanwhile, the Asia-Pacific region and non-aligned movement countries made up less than 10% of all crypto withdrawals.
The increasing adoption of crypto salaries reflects not only a desire for individuals to protect themselves from economic instability but also the growing acceptance and usability of cryptocurrencies as a means of financial transactions. As the global landscape continues to evolve, it is likely that more individuals and businesses will turn to cryptocurrencies as a reliable and efficient method of payment.
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