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Why Are Crypto Payments Gaining Popularity in Volatile Economies?

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VOC,Voice of Crypto, BTC Payments

Deel, a global hiring platform, has predicted that workers and wage earners in volatile economies will likely receive a part or the entirety of their pay in cryptocurrencies. In the “State of Global Hiring Report,” Deel shared that cryptocurrencies remain a significant form of payment.

Deel observes that despite the brutal 2022 bear market, cryptocurrency continues to make up 5% of all payments withdrawn globally. Despite what was anticipated, the bear cycle did not have much of a negative impact on this.

The prediction also suggests that countries with higher degrees of volatility in their economies lean more towards making payments in cryptocurrencies. This highlights the leading role of Latin America and Europe in this context. Latin America represents 67% of the total crypto payments made globally.

Following closely at the heel are Africa and the Middle East. Both regions sustain considerably volatile economies. Of course, some regions do not come close to these numbers either. For example, North America makes up just 7% of the cryptocurrency payments around the world, while the Asia Pacific region ranks even lower at 2%.

Bitcoin Tops the List of Crypto Payments

Despite the 2022 bear market, Bitcoin seems to retain its position as the most popular means of crypto payment, as is evident from the fact that it makes up 47% of all the payments made.

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Circle’s USD Coin, or USDC, forms the next most considerable chunk, with a representation of 29%. Ether, or ETH, comes up third at 14%. However, other major market players like Tether (USDT) did not quite make it to the list.

According to Sharon Karaka from Deel, the workers receiving their payment in cryptocurrency typically withdraw only a part thereof, which still leaves a significant chunk of it as a long-term saving or investment.

In identifying the population most attracted to the idea of receiving their payment in terms of crypto, Karaka identifies that the most significant chunk is the group that intends to combat the risks posed by the state of the local currency.

Plus, those employed in regions with inconvenient and backward local banking systems and those aiming to invest in cryptocurrency are also coming forward enthusiastically to support this growing trend.

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