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The gig economy and freelancing have grown astronomically, with a total of 1.57 billion freelancers in the world, amounting to 47% of the world’s workforce. With this trend and statistics showing that the gig economy already accounts for 12% of the labor market globally, the big shift toward flexible and more independent modes of work has already happened. It is inclusive of only the gig economy, which grew 15 times faster than traditional employment, raking in revenue of $5.4 trillion in 2021. These figures give meaning to the size and influence of the freelance and gig economy that has disrupted traditional ways of employment and redefined how work is considered and carried out globally.
How do freelancers and gig workers get paid?
Traditional payment methods, such as digital wallets and bank transfers, have long dominated how freelancers and gig workers get paid; innovative freelance payment platforms and cryptocurrencies have changed this landscape. Today, most freelancers can create a payment link to get paid instantly in seconds.
Payment challenges freelancers face around the world
The critical challenges faced by freelancers and gig workers are those that deal with payment. Most freelancers complain about the time it takes before they can have their money in hand, some taking up to 3-5 days and others even longer. The implication of such delays is huge on cash flow and financial stability, with many still calling for their money within 24 hours or, for that matter, real time. Apart from this, delayed payments could make it impossible for gig economy workers to reinvest in their businesses or sustain their livelihoods.
What’s more, many freelancers feel that payout fees are way too high and deplete them with money that they very badly need. In addition to this, when fluctuations in currency take place, it may be that in regions such as Latin America, tumultuous currency exchange rates could shave off income and add to other economic burdens that freelancers may already have on their shoulders.
The case for stablecoins
Stablecoins have proven to be a great alternative to traditional fiat payments. By implementing a basic crypto payment solution, freelancers can receive their payments faster and at fairer transaction fees.
A Hedge against local currency fluctuations
Most freelancers share one common view: that cross-border remittance, especially those made using stablecoins pegged to the U.S. dollar, would insulate their earnings from inflation and volatility in the currency. This will give freelancers more control over the value of their income, particularly where the local currencies are unstable.
Smoother collaboration with clients around the world
This, freelancers believe, will facilitate receiving payments from clients across the world, especially in highly sought-after regions like Latin America and Africa. It is to such an extent that even EU-based freelancers consider cryptocurrency to be better for international payments.
Ownership and control over their Money
Many freelancers indeed believe that crypto payouts, whether in Bitcoin, Ethereum, or stablecoins like USDT and USDC, provide them with greater control and ownership of money, thus increasing confidence in the security of their earnings.
Reduced transaction costs
Still, another significant advantage in the use of stablecoins to pay freelancers could be the very real potential for a reduction in transaction costs. Traditional international wire transfers include high fees that just take a bite out of what poor, old freelancers bring home. Stablecoin transactions incur fewer fees, especially for cross-border payments. This cost-effectiveness can make a huge difference in the net income of a freelancer, especially when one is operating on small projects or within developing economies where every dollar has significant value. By using stablecoins, freelancers are able to keep more of their hard-earned money and therefore make the job more profitable and rewarding in the long run.
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