In a world increasingly affected by economic instability and political tension, more employees and freelancers are opting to receive their salaries in cryptocurrencies like Bitcoin. This growing trend, monitored by HR executives, is largely driven by a desire to hedge against unpredictable fiat currencies, and stablecoins are becoming an attractive option for salary payout.
Notably, this movement is not just the playground of high-profile athletes and politicians trading in their salaries for crypto. Instead, average individuals are turning to digital currencies to secure their finances against various forms of instability. As Michael Brooks, co-founder and CEO of goLance, points out, these factors have triggered a surge in salaries paid in crypto, including increased acceptance as a legitimate payment method, ongoing crypto education, and technological progress.
The destabilized economic conditions in many parts of the globe have also steered this surge. In fact, regions with political instability, hyperinflation, or restrictive financial systems have witnessed a hike in crypto usage, according to Brooks. He also highlighted goLance’s own payout statistics. In 2021, crypto made up less than 5% of its payouts, a figure that grew to almost 10% in 2022 and is expected to hit 17% in 2023.
The benefits of earning in crypto- especially in places dealing with political and currency turbulence, become increasingly clear. Many employees globally find it a better shield against sharp fluctuations compared to local fiat currencies. Dan Westgarth, COO at HR and payroll platform Deel, noted that USDC, or USD Coin, is a popular choice among such employees.
Despite the positive trend, detractors point out the potential hazards associated with transacting and earning in digital currency. Over-reliance on an inherently volatile asset can be dangerous, and regulators worldwide grapple with creating safeguards and laws that strike a balance between innovation and consumer protection. Moreover, the lack of widespread adoption by businesses and merchants for everyday transactions remains a point of contention. Will receiving wages in crypto become the future norm or remain a novelty for those seeking alternative financial avenues? The verdict is yet to be decided. However, one thing remains clear: the world of work and pay is changing— and cryptocurrencies are in the thick of it.
Source: Cointelegraph
