Venezuela’s economic situation, marked by inflation, has driven the increase in the sending of remittances in cryptocurrencies to the country.

Another of the compelling reasons for a rebound in this alternative is the difficult access to foreign currencies, especially the dollar.

Crypto remittances demonstrate a change in “patterns of sending money to the country, offering an agile and decentralized alternative to traditional money transfer methods.”

The use of blockchain technology by Venezuelans to receive funds quickly and safely demonstrates not only “the growing confidence in cryptocurrencies as a store of value, but also as a tool to circumvent financial restrictions imposed by government policies and international sanctions.”

With the increase in remittances in cryptocurrencies, the recipients of the money benefit but also the market, since the alternative is to inject liquidity in the absence of access to foreign currencies.

It is estimated that these remittances help “maintain domestic consumption and support key sectors such as retail trade and services, partially cushioning the effects of the economic recession.”

With this trend, Venezuelans demonstrate that they are capable of adapting to the challenges of the country’s economy, in addition to an advance in the way they “manage their personal and family finances” with the help of blockchain technology evolves.

M.Pino

Source: Binance

(Reference image source: DrawKit Illustrations in Unsplash)

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Paying salaries in cryptocurrencies in Latin America is a trend that is increasing. In 2023, the number of workers receiving their payment in these currencies increased from 2 to 5 %.

Cryptocurrencies have gained ground in Latin America, becoming an alternative for paying salaries to employees in key positions or those who work remotely and even from another country, thus ending geographical limitations.

“Payments in cryptocurrencies have been the great gateway for people to work for other countries, taking advantage of how cryptocurrencies have broken geographical barriers and reduced the times for payments between different regions,” said the director of Brand for Europe and Latin America on the global exchange BingX, the Argentine Pablo Monti to Bloomberg Linea.

The sending of digital remittances is also increasing in the region. According to estimates by the multinational Mastercard, these operations could surpass “the sending of physical money across borders,” which would generate an increase of US$20 billion by 2026.

The BingX platform points out that Argentina, Brazil and Mexico are the countries that have the highest volume of employees in cryptocurrencies or that want their salaries to be paid in this modality.

Without a doubt, remote work, which was consolidated during the quarantine due to the Covid-19 pandemic, welcomed the payment of salaries in crypto as the best solution, without leaving aside the challenges that remain in the fiscal aspect and interoperability between the different financial services of the countries, in addition to the labor regulations in force in each nation.

Blockchain technology takes center stage in this growing trend of corporate payments in cryptocurrencies, providing efficiency, security and transparency to cross-border operations.

In terms of figures, “according to the Deel Lab for Global Employment Global Hiring report, published in 2023, payment to remote workers in Latin America through cryptocurrencies increased on the platform from 61 % to 64 % between January and December 2022.”

Latin America remains the region with the highest number of workers who choose to receive payments with cryptocurrencies. They are followed by Europe, the Middle East and Africa/EMEA (27 %); Asia-Pacific/APAC (8 %) and US and Canada/NAM (2 %). The preferred digital currencies for these payments are Bitcoin (64 %), USDC (26 %), Ethereum (7 %), Solana (2 %) and Dash (1 %).

M.Pino

Source: bloomberglinea

(Reference image source: John Paul Cuvinar in Unsplash)

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La entrada Payment of salaries in cryptocurrencies in a growing trend in Latin America apareció primero en Bitfinance.