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Bitcoin Wages: A Preferred Choice Amid Economic Uncertainties
In a world riddled with economic and political upheaval, an increasing number of employees are opting for cryptocurrencies such as Bitcoin as their chosen mode of salary payment, reveal executives from the human resources sector.
The Increasing Popularity of Crypto and Stablecoin Salaries
Crypto and stablecoin salaries have seen an uptick in recent years. Michael Brooks, the co-founder and CEO of goLance, suggests that this trend is not limited to high-profile athletes or political figures receiving crypto compensation. Instead, the average individual is also showing an inclination towards crypto wages as a guard against various forms of instability.
The rise in crypto salaries is attributed to a variety of factors. Greater acceptance as a legitimate mode of payment, the spread of crypto education, and recent tech advancements have all played a part, Brooks explained in a Cointelegraph interview.
Global economic conditions also play a significant role in pushing this trend. Brooks stated:
"Cryptocurrency usage as an alternate transaction method has witnessed an increase in regions grappling with political unrest, rampant inflation, or restrictive financial frameworks."
In 2021, less than 5% of goLance's payouts were made in crypto. This figure rose to nearly 10% in 2022 and is projected to reach 17% by 2023. Brooks mentioned, "Among the goLance freelancers opting for crypto payment, 17.5% of the payouts are made in crypto, while 82.5% are made in traditional currency."
Crypto Wages as an Answer to Economic and Political Instability
Dan Westgarth, the Chief Operating Officer at human resources and payroll platform Deel, noted that increasing political and economic instability, causing severe swings in local fiat currencies, has led many global employees to choose crypto wages. Stablecoins like USD Coin are becoming more appealing:
"Countries experiencing political and currency upheaval are increasingly adopting crypto. We see particularly higher withdrawals in USDC to tackle volatility."
The Caribbean, with its antiquated banking systems, serves as a prime example where the hassles of prolonged waiting times, payment delays, and banking withdrawal charges can be circumvented through crypto, Westgarth pointed out.
Out of the regions that Deel supports for crypto payroll, Latin America leads in terms of withdrawals, accounting for 54% of crypto withdrawals on the platform from January to May of 2023.
During the same timeframe, crypto salaries in Europe, the Middle East, and Africa represented 38%. The Asia-Pacific region and non-aligned movement nations collectively accounted for less than 10% of all crypto withdrawals, Westgarth highlighted.
