There has been a sharp rise in Argentinians choosing to work for companies that pay them in crypto rather than fiat, a new report has suggested.
Speaking to the media outlet Criptonoticias, Jonathan Chester, the CEO of Bitwage claimed that in the past year, the number of Argentines who have used the platform to collect pay in crypto had grown by 250%.
Criptonoticias added that the growth in crypto pay-receiving workers “may be even higher if other payment [methods and platforms] are also taken into account.”
Bitwage added that Argentinian freelancers who use the platform are earning “around $3,000,” with higher-earning individuals making “up to $5,000,” a pay package that “far exceeds the average local salary.”
Minimum-wage workers in Argentina can expect to make just $181 a month – a figure that is exacerbated by the nation’s crippling hyperinflation.
According to figures released last month by the nation’s economy ministry, inflation in Argentina hit 94.8% in 2022. These figures were the highest recorded anywhere in the world in 2022, and the nation’s highest since 1991.
Why Are Argentinian Workers Increasingly Looking to Get Paid in Crypto?
This hyperinflation – and the government’s attempts to cap USD-buying behaviors – have been widely credited with driving up Argentines’ crypto adoption. Despite the recent bear market, many in the nation appear to believe that crypto represents a safer bet than the fiat peso.
Chester explained that the overwhelming majority of his firm’s users prefered to receive payments in bitcoin (BTC), ethereum (ETH), or USD-pegged stablecoins.
The CEO added that he expected crypto to experience faster short-term growth in Argentina than in the United States.
He was quoted as opining:
“In Argentina, the use of cryptocurrencies has become a necessity.”
In 2021, Argentina’s President Alberto Fernández claimed that crypto may have the power to fight inflation and operate as “hard currency, somewhat.”