Crypto is being used in developing economies to pay salaries


Companies are discovering that blockchain technology can facilitate global talent sourcing.

Individuals in countries with a history of financial instability or hyperinflation are increasingly adopting cryptocurrency as their primary source of income.

As inflation soars in countries such as Argentina, Brazil, Turkey, and portions of Africa people are flocking to cryptocurrencies, according to Philipp Sandner the head of the Frankfurt School Blockchain Center.

Companies use blockchain technology to find labour globally and pay their workers in cryptocurrencies such as bitcoin, ether, and stablecoins tied to the US dollar as a low-cost alternative to conventional international money transfers.

“The full value of blockchain technology is realised via the transfer of cryptoassets,” stated Sandner. Individuals working by organisations headquartered in foreign nations find digital assets to be very valuable.

Joel Oshiegbu, a Nigerian employee of Berlin-based crypto accounting service, is now being paid in tether (USDT) “because it’s the most popular stablecoin, simpler to find a buyer, and less subject to a bank run,” he said.

After receiving his salary, Oshiegbu transfers the cash to exchange and sells his possessions. Nigeria outlawed the bank-to-bank trade of cryptocurrencies in February 2021 and issued its own digital currency. But this has not prevented the Nigerian cryptocurrency ecosystem from participating in peer-to-peer trading.

A recent Chainalysis research rated Nigeria sixth in the world for bitcoin adoption and eighteenth for peer-to-peer exchange volume.

The 2020 World Bank study indicates that the cost of remittances exceeds the United Nations’ Sustainable Development Goal of 3 percent by more than double. In contrast, bitcoin transactions are much less expensive since they do not incur bank fees or foreign exchange rates.

Also Read: Heatwave Forces Bitcoin Miners in Texas to Close – TrueBitcoiner

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