Only 3% of crypto workers receive their salaries in digital currencies, highlighting the long road to adoption

One would think workers at the forefront of crypto innovation and technology would ‘walk the talk’ by fostering the adoption of digital currencies as a medium of remuneration but a report has disclosed that this is not the case currently.

According to a recent report by Crypto Hedge Fund Pantera Capital, 97% of people preaching about crypto’s status as the “future of money” actually prefer being paid in fiat like the US dollars, Nigerian naira and others.

Although cryptocurrencies as a concept are still nascent and have a long way to go in adoption, there are people who work in the crypto industry in different capacities. Now Pantera Capital has revealed that some of the workers in the industry prefer to receive their salaries in fiat cash, and the journey to mainstream acceptance might be farther than we thought.

More on the Pantera Capital report 

Crypto hedge fund Pantera Capital released the annual Blockchain Compensation Survey in the last week of September and it delves into the conditions of the global Web3 workforce.

Read also: Stablecoin market cap has been declining for 18 months; why are investors fleeing crypto ‘safe haven’?

The survey collated responses from 1,600 participants from over 25 “geographically distributed startups” across North America, Latin America, Europe, the Middle East and Africa (EMEA), and the Asia-Pacific (APAC). The bulk of respondents came from DeFi (40.7%) and CeFi (26.1%) like crypto exchanges Binance, Coinbase and Kraken.

To the crux of the report, Pantera Capital says a whopping 97% of these participants prefer being paid in traditional currencies like USD, NGN and EUR. 

Out of the 3% of workers who are still being paid their salary in crypto, the report reveals that the stablecoin USDC is the “clear token of choice”. They represented 56% of crypto salary payments.

In second place is also a stablecoin, USDT, at 25% while flagship digital asset Bitcoin occupies the third place at 13%.

According to the Pantera Capital report: “Given the state of the market, the global workforce has lost some interest in receiving payment in cryptocurrency.” 

Why are workers not accepting payments in crypto?

In a world where embracing cryptocurrencies is preached, it may come as a surprise that many workers within the industry still prefer to receive their salaries in traditional fiat currencies rather than the digital assets they help develop and promote.

One of the possible reasons why this is so is the volatility concern. Cryptocurrencies are notorious for their price volatility. Many employees are wary of having their entire income subject to the unpredictable fluctuations of digital assets. They prefer the stability offered by fiat currencies.

Also, Tax regulations for cryptocurrencies can be complex and vary from one jurisdiction to another. Some workers opt for fiat payments to avoid potential tax complications associated with receiving crypto salaries.

Read also: Nigeria’s crypto transaction volume grew 9% to $56.7 billion in a year – Chainalysis report 

Additionally, it could be said that not everyone in the crypto industry is a seasoned investor or trader. Some employees might not fully understand how to manage crypto assets, leading to a preference for fiat salaries, which they are more familiar with.

How can more workers be encouraged to receive salaries with crypto?

One way to address the volatility concern is to offer salaries in stablecoins like USDC or USDT, which are pegged to the value of fiat currencies. This can provide employees with the benefits of crypto while mitigating price fluctuations.

Additionally, Providing clear and concise guidance on tax implications related to crypto income can alleviate concerns. Employers can collaborate with tax experts to ensure employees have the necessary information to comply with tax regulations.

Also, offering additional incentives, such as bonuses or discounts, for employees who opt to receive their salaries in crypto can encourage adoption.

In conclusion, the hesitancy among crypto industry workers to receive their salaries in digital assets is not unfounded. However, with thoughtful solutions and initiatives, the industry can gradually shift towards greater acceptance of crypto payments.