Executives in the human resources industry have observed a growing willingness among individuals to receive their salaries in cryptocurrencies like Bitcoin (BTC) and stablecoins. This trend is driven not only by high-profile figures such as athletes and politicians but also by ordinary people seeking to hedge against political and economic instability.
According to goLance co-founder and CEO Michael Brooks, the increase in crypto salary payments is influenced by factors such as the acceptance of cryptocurrencies as a legitimate payment method, improved education about crypto, and advancements in technology. Additionally, economic conditions in certain regions, characterized by political instability, hyperinflation, or restrictive financial systems, have prompted individuals to turn to cryptocurrencies as an alternative means of conducting transactions.
Brooks stated that goLance, a platform for freelancers, saw less than 5% of payouts made in crypto in 2021, which grew to almost 10% in 2022. He expects this percentage to reach 17% in 2023. Among goLance freelancers who choose to be paid in crypto, an average of 17.5% of their payments is in crypto, while the remaining 82.5% is in fiat currency.
Dan Westgarth, the chief operating officer at human resources and payroll platform Deel, also highlighted the increasing adoption of crypto salaries. He noted that employees worldwide are opting for crypto wages to combat political and economic instability, which has caused sharp fluctuations in local fiat currencies. Stablecoins like USD Coin (USDC) have become more attractive in such circumstances.
Westgarth mentioned that the Caribbean region, with its outdated banking systems and associated delays and fees, presents a strong use case for crypto salaries. Deel supports crypto payroll in various regions, with Latin America accounting for 54% of crypto withdrawals on the platform between January and May 2023. In Europe, the Middle East, and Africa, crypto withdrawals accounted for 38% during the same period. The Asia-Pacific region and non-aligned movement countries collectively represented less than 10% of all crypto withdrawals.
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