Bitcoin salary: Employees choose crypto paychecks amid economic instability

Increasing Popularity of Crypto Salaries

Executives in the human resources industry have noted that due to the increasing political and economic tensions around the globe, more people are open to the idea of being paid in cryptocurrencies such as Bitcoin (BTC).

In recent years, the proportion of salaries paid in cryptocurrencies and stablecoins has increased. This trend is not only due to well-known figures such as athletes and politicians opting to receive their wages in crypto, but also by everyday people who are seeking to protect themselves from any kind of uncertainty, according to Michael Brooks, co-founder and CEO of goLance.

Brooks stated in an interview with Cointelegraph that several elements have caused a spike in crypto wages, such as increasing recognition as a valid payment option, expanding education, and new technological progressions.

He commented that the economic conditions in various parts of the world have had an effect on the surge in crypto payments, and further added.

In 2021, goLance paid out less than 5% of its earnings in cryptocurrency, which increased to almost 10% the following year and is predicted to reach 17% in 2023, according to Brooks. He added that, among goLance freelancers who opt to be paid in crypto, an average of 17.5% of payments is in cryptocurrency and 82.5% in fiat currency.

Dan Westgarth, the COO of Deel, a human resources and payroll platform, stated that due to the current political and economic volatility leading to sharp fluctuations in local fiat currencies, many workers around the globe have begun to receive their wages in cryptocurrency, making stablecoins such as USD Coin (USDC) increasingly appealing.

He stated that the Caribbean is a prime example of how crypto salaries could be beneficial due to its outdated banking systems, which often have long waiting times, delayed payments, and high banking withdrawal fees that could be avoided with the use of cryptocurrency.

Regional Breakdown of Crypto Withdrawals

Cryptocurrency holders from LATAM have been flocking to Bitget in the wake of Binance and Coinbase’s decision.

In the regions serviced by Deel for crypto payroll, Latin America has the greatest proportion of withdrawals, comprising 54% of crypto withdrawals on the platform from January to May of 2023.

Crypto salaries across Europe, the Middle East and Africa made up 38% of all crypto withdrawals during the same period. Westgarth observed that Asia-Pacific and non-aligned movement countries together accounted for less than 10% of all crypto withdrawals.

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