Employees opt for Bitcoin salaries amidst economic instability.

Political and economic tensions around the world are leading some individuals to prefer receiving their pay in cryptocurrencies like Bitcoin (BTC), according to executives in the human resources industry.

The percentage of salaries received in cryptocurrencies and stablecoins has been increasing in recent years. This trend is driven not only by prominent athletes and politicians opting for crypto payments, but also by ordinary individuals who want to protect themselves against various forms of instability, as stated by goLance co-founder and CEO Michael Brooks.

Several factors have contributed to the rise in crypto salaries, including greater acceptance of cryptocurrencies as a legitimate payment method, increased education, and advancements in technology, according to Brooks in an interview with Cointelegraph.

Brooks also mentioned that economic conditions in different parts of the world have influenced the surge in crypto payments. He added:

“Some regions experiencing political instability, hyperinflation, or restrictive financial systems have seen an increase in cryptocurrency usage as an alternative means of conducting transactions.”

In 2021, goLance made less than 5% of its payouts in crypto, which grew to almost 10% in 2022 and is projected to reach 17% in 2023, according to Brooks. “Of the goLance freelancers who choose to be paid in crypto, an average of 17.5% of their payments is in crypto and 82.5% is in fiat,” the executive noted.

Dan Westgarth, chief operating officer at human resources and payroll platform Deel, stated that many employees worldwide are opting to receive their wages in crypto due to the political and economic instability that has resulted in significant fluctuations in local fiat currencies. This has made stablecoins like USD Coin (USDC) more appealing. Westgarth said:

“We observe that countries facing more political and currency turbulence continue to utilize crypto, particularly withdrawals in USDC to mitigate volatility.”

He also mentioned that the Caribbean provides a use case for crypto salaries due to its outdated banking systems, where lengthy waiting periods, payment delays, and banking withdrawal fees can be avoided by using crypto.

Related: LATAM crypto holders flock to Bitget following Binance, Coinbase suit

Among the regions supported by Deel for crypto payroll, Latin America has the highest share of withdrawals, accounting for 54% of crypto withdrawals on the platform between January and May 2023.

Crypto salaries in Europe, the Middle East, and Africa accounted for 38% during the same period. The Asia-Pacific region and non-aligned movement countries collectively accounted for less than 10% of all crypto withdrawals, according to Westgarth.

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