Developing countries prefer to pay salaries in cryptocurrencies

Users from countries with an unstable financial history tend to be more predisposed to receive your salary in digital currencies. In fact, those countries that have a long financial history of hyperinflation or that have national currencies that have traditionally been unstable are beginning to accept cryptocurrencies as a primary source of income.

In this way, citizens of countries such as Brazil, Argentina, Türkiye and other African countries, They prefer to collect their salary in cryptocurrencies, this being a way of trying to protect themselves against the inflation that they experience in their respective nationalities.

In this sense, companies around the world are turning to blockchain technology to find new talent, while making use of cryptocurrencies such as Bitcoin or stablecoins as an alternative to international money transfers. The latter usually have very high commissions associated with them.

A 2020 World Bank report shows that the cost of international remittances is 6.5%, which is more than double the United Nations Sustainable Development Goal, which is established at 3%. Compared to this, cryptocurrency transfers are much cheaper, as they have no commissions or exchange rates.

The option of being able to receive your salary in cryptocurrencies is very useful for those people who are hired by companies in other countries. The most common thing is that the company pays in a stablecoin such as tether, and it is the user themselves who stores the cryptocurrencies in an exchange or exchanges them for fiat money and then transfers the money to their corresponding bank account.

In most cases, workers prefer to be paid in stablecoins, since their prices always remain stable, unlike what happens with Bitcoin and the like.

Advantages of paying your salary with cryptocurrencies

Paying salaries in cryptocurrencies also allows companies increase your access to talent, since they have the possibility of hiring employees all over the world, eliminating the worry of payments.

This offers greater versatility for companies, while improving prospects, which can have a great impact on organizational capacity. Likewise, it offers greater flexibility as well as the possibility of carrying out a simpler and more timely integration and conciliation between personal life and work.

On the other hand, with this way of paying salaries in cryptocurrencies, companies have the possibility of hire talent in countries that are sanctioned like Cuba or Iran, since they will be able to pay workers’ salaries through decentralized exchanges.

Disadvantages of paying your salary with cryptocurrencies

However, it must be taken into account that there are not all advantages when receiving or paying salaries with cryptocurrencies to workers. To start, receive your salary in digital currencies It is not available for people from countries that have a high cryptocurrency restriction.

This is the case of China, where the payment of salaries in USDT has been prohibited, since they consider that cryptocurrencies are not legal currencies. In addition, this nation is one of those that has the most restrictive regulations regarding this type of assets, prohibiting both their possession and use.

In other countries around the planet, as is the case of Spain, cryptocurrency payments are not regulated. However, it must be taken into account that it is not possible to receive the salary in digital currencies, although it is possible to receive bonuses or change the full salary once it is received.