By this, I am not just referring to those who use crypto transactions. I am referring to the generation of Latin Americans whose attitudes and lifestyles might have seemed unorthodox a decade ago, but today are quite the opposite.
First of all, they are characterized by a clearly flexible approach to life and work; the idea of a regular job and a steady paycheck is far less appealing than the freedom of multiple and varied income streams in the gig economy. Currently, 21% of Latin Americans describe themselves as freelancers; of them, 50% are under 30 years old; 70% find projects through online marketplaces, and nearly 54% use Facebook to find work.
Undoubtedly, this trend towards flexible working was further extended by the pandemic and subsequent restrictions. According to the ILO (International Labor Organization), 23 million Latin American and Caribbean people worked from home during the pandemic, which represents between 20% and 30% of all registered workers, compared to only 3% before the pandemic. .
Flexible and freelance work have become mainstream in Latin America, and this trend is likely to continue. Because, according to research from employment provider ADP: in Brazil, Chile and Argentina, 70% of employees would like to have more flexibility when it comes to working.
The second trend is the extent to which the web has been part of the daily routines of Latin Americans, whether for work, leisure, shopping or human relations, practically all activities are complemented by the use of the web or social networks. According to research, 56% of Latin American employees believe that the use of social media ultimately helps their work performance, while 64% admit that social networks influence their purchasing decisions.
The third trend is the attitude of these generations to share and, in particular, the sharing economy. According to a PWC study, Latin Americans are more willing to share assets with others than their Western counterparts (70% vs. 54% in Europe and 53% in North America). And the principle is equally applicable to ideas and concepts as it is to goods and services. According to the same research, 30% of those surveyed in the region are willing to “share their knowledge and experiences for profit”; this compares with a global average of just 26%.
These trends have combined to represent a new level of independence, collaboration, and self-reliance across the region; cryptocurrencies represent a logical extension. Today’s “crypto generation” doesn’t have to be particularly tech-savvy or politically motivated; sees cryptocurrencies as a safe haven, a flexible alternative to fiat money, and an increasingly solid investment for the future. In many cases, cryptocurrency trading represents a complementary source of income for them.
Again, the pandemic only served to exacerbate this trend. Usage of e-learning tools soared by more than 60% during this period, driven by the search for alternative income and training; in many cases, from home.
Today, the impact of Latin America’s crypto generation is huge. For example, Argentina, it is now the country with the highest proportion of employees paid in cryptocurrencies. Workers now have the legal right to receive up to 20% of their salary in cryptocurrency as part of a government plan to minimize the effects of currency volatility and inflation, which has at times reached as high as 50%. As a direct result of these measures, companies that pay salaries in digital currency have skyrocketed 340% in the last 12 months.
Also, it is estimated that 52% of Latin American countries now offer the possibility of paying salaries, at least in part, in crypto. And since November 2020 there has been a 10% monthly increase in people wanting to receive their salary in crypto, with Argentina and Brazil having the largest crypto salary withdrawals. This trend is also growing significantly in Chile, another regional economic power.
New research from Mastercard even suggests that 83% of Latin American consumers are now willing to use at least one emerging payment method, such as cryptocurrency, biometrics, contactless technology or QR codes.
We are very far from the illicit or the shady!
the arrival of the “cryptogeneration” a Latin America has enormous implications for the financial sector. As these types of transactions become more widespread, expectations in terms of customer service, transparency, and compliance will rise dramatically.
From flexible working to living online, as these experiences have become the norm (rather than the exception), and “pioneers” have been replaced by “consumers”, so have been their expectations. The crypto generation already expects a level of service equivalent to that of their high street bank… or should it be, online banking.
This represents a huge challenge for the sector, but also an opportunity. Cryptocurrency brands that can meet the expectations of the new “cryptogeneration” in Latin America will be better positioned in the future.
Business development & PR Manager at Phemex.
Source: Ambito
