Why Latin American laborers prefer receiving payments in cryptocurrency

Dan Westgarth from Deel discusses the company's adjustments to hiring Latin Americans in an economically unstable area.

Dan Westgarth, holding the position of chief operating officer at Deel, a worldwide remote payroll firm, elucidated the payment process for remote employees in economically challenged nations and outlined the most in-demand categories of global remote work.

This interview has undergone editing to ensure brevity and lucidity.

What's the global outlook on remote work trends?

Companies are increasingly inclined to recruit from Latin America, surpassing all other markets. In the first half of 2022, hires in the region surged by 161% compared to 2021, with a focus on tech professionals. Argentina leads globally for hiring software engineers and product managers, while Brazil also boasts a substantial software engineering talent pool. India sees a rise in technical support roles, while the Philippines and Pakistan are prominent for customer support hires.

Amid Argentina's economic challenges such as high inflation and currency restrictions, how do remote workers receive payments?

In Argentina, there's a preference for U.S. dollar payments as a safeguard against inflation. However, a notable trend is the uptake of cryptocurrency payments. Cryptocurrencies offer investment opportunities and yields. Similar practices occur in the Caribbean due to quicker transaction settlements compared to traditional banking. Moreover, individuals often convert their payments into Bitcoin as an investment strategy.

Why do companies opt for cross-border remote hires? Is it solely driven by economic factors?

The decision primarily revolves around talent rather than economics. Companies prioritize skills over geographical perks. Three main reasons emerge for remote hiring: expanding the hiring scope globally, accommodating specific time zones, and serving customers in different geographic regions than the company's base.