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Can Stablecoins Resolve the Payout Issues in ALASA (Global South)

August 19, 2025
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Stablecoin payouts are starting to receive some recognition as a practical way to address age-old payroll and payment challenges in emerging markets. 

Often in Africa, Latin America, and South Asia, delays, high transaction fees, and sometimes limited access to formal banking options delay or limit some businesses from paying workers and partners promptly. 

The challenges associated with payment are often inefficient and contribute to workforce discontent, especially in regions where workers depend on timely wages to satisfy the most basic day-to-day demands of life. 

Stablecoins are digital tokens tied to stable assets, such as the US dollar. The tie to stable assets keeps stablecoins at a consistent value, which is itself one of the key distinctions from more volatile cryptocurrencies. Because stablecoins are stable, they are now seen as practical for payroll and international payments. 

Stablecoins clear transactions faster, have lower transfer costs, and provide access to workers who may not have a viable banking alternative. Through these new efficiencies, stablecoins allow employers and workers to manage payout complexities across the Global South in a promising way.

With quick settlement times, lower transaction fees, and additional available options, stablecoins provide a compelling case for modernizing and changing the way payouts are done throughout the Global South. 

This article examines whether stablecoins can solve payout challenges in Africa, Latin America, and South Asia. 

It describes the challenges associated with traditional systems, considers the option of stablecoin adoption, and explores the potential ramifications for HR technology and workforce management.

The Issues with Conventional Systems

The Global South continues to confront major challenges in managing domestic and cross-border payouts. 

Many of these challenges are housing in traditional payment and banking systems, which are expensive, slow, and frequently inaccessible from different locations. 

These challenges raise expenses for both employers and employees, as well as negative productivity, trust, and financial health.

Exorbitant Transaction Costs

One of the biggest challenges is the cost of transferring money. Millions of migrants continue to support their families, but sending money comes at a high cost. 

  • The World Bank's Remittance Prices Worldwide (RPW) shows that in Q2 of 2024, the average cost to send USD 200 to the Western Balkans (WB6) was 7.94%. 

Of the 819 services on those corridors, 26% of them had a combined cost of more than 10% in fees and foreign exchange. 

Such costs diminish the real value of transfers and create additional strain on workers and families who mainly depend on remittances for food, healthcare, and education.

Delays in payment processing:

Delays are still a significant obstacle. Payments going through traditional systems often result in slow transfer times. These delays stem from outdated infrastructure in the bank, manual compliance checks, and regulatory waiting periods. 

At this point: 

  • Workers may be waiting several days or longer for their funds to arrive, making it difficult for them to access their wages promptly.

  • Manual compliance checks add to the banking infrastructure delays, which slow down processing.

  • Uncertainty over the settlement times results in trust erosion between employee and employer.

Limited Financial Inclusion

In many instances, informal or cash-based transactions are only made through payment channels, reducing efficiency and transparency; the fact is that most people in countries such as Africa, Latin America, and South Asia are unbanked or underbanked.

  • Informal payments do not provide the proper documentation and therefore present risk to both the sender and recipient.

  • When workers do not have bank accounts (known as underbanked), they have limited safe options to receive cross-border payouts.

  • Without access to formal systems, they have no way to access the wider range of financial services, such as savings or credit.

Limited financial inclusion

Many people in regions like Africa, Latin America, and South Asia are still unbanked or underbanked. Cash-based or informal channels are frequently their only payment options, which limits efficiency and transparency: 

  • Informal payments leave little paper trail with risky exposure for both sender and receiver. 

  • Workers without bank accounts have fewer secure options for receiving cross-border payouts. 

  • Lack of a channel to formal systems prevents people from accessing broader financial services like savings or credit.

Currency volatility and exchange restrictions 

Economic instability in many emerging markets complicates matters further: 

  • The rapid devaluation of currency erodes the real value of pay, sometimes within days or weeks. 

  • Bad exchange rates lower the overall effect of remittances, especially for low-income workers. 

  • If you add in overly cumbersome foreign transfer restrictions, sending money can make it much more difficult to convert and move your money smoothly.

Possible Consequences for HR Technology

The use of stablecoins for payouts has important implications for HR technology. 

Payroll, compliance, and workforce management technology will have to develop ways to integrate digital assets with fiat currencies. 

This shift may change the dynamics of attracting, retaining, and paying talent in the Global South and beyond.

Payroll Reform

Stablecoins have the potential to lessen reliance on slow and expensive traditional rails. For HR tech companies, this means building payroll systems that accept digital currency natively.

  • Wages could be delivered in near real-time at any time of day rather than being sat in international payroll limbo.

  • Cross-border teams can receive consistent payments with predictable hours to pay for hours billed without heavy transformation losses to each country's issued currency.

  • Payroll automation could extend vendor capabilities to fiat and digital currency options while improving flexibility.

Better Employee Experience

Speedy payouts that are transparent improve the perceptions employees have about their employers. In labor markets characterized by competition, this could be a differentiator.

  • More timely payout durations positively impact the trust and sense of financial security employees have, especially contract workers or gig workers.

  • Digital wallets that integrate with HR services increase employee' ability to manage their funds.

  • A modern, technology-savvy payout model makes a value proposition for employer branding, especially in industries competing for scarce digital talent.

Compliance and Risk Management

HR technology vendors will also have to assess the regulatory scope of frameworks as they relate to payouts via stablecoins. 

If payouts via stablecoins became mainstream, this could be subject to several compliance frameworks, so monitoring will be an essential requirement.

  • Systems must audit and track payments for a variety of issues (tax reporting, anti-money laundering (AML), and know-your-customer (KYC)). 

  • Auditable records would be essential to meet both local regulatory requirements as well as international requirements.

Strategy and Talent Retention

Introducing access to stablecoin payments, especially in underbanked regions, may be a game-changer in how organizations rethink their global hiring.

It allows organizations to hire across geographic regions that were previously not accessible due to a lack of reliable financial infrastructure.

  • Workers in underbanked regions may also prefer employment with organizations that offer stablecoin payments over ones that offer traditional banking methods.

  • Allowing people to choose flexible payment mechanisms and pay structures may help employers retain their digital native employees looking for financial innovation.

  • Employers may consider using stablecoin as part of a broader compensation strategy to offer hybrid pay structures.

The Roadmap Ahead

For HR technology providers, the shift to stablecoin payments is much more than a payment innovation. It represents a strategic inflection point. Solutions will need to change and evolve to incorporate digital asset management, employee self-service wallets, and compliance modules/services. 

Those vendors willing to pivot should be well-positioned to carve out a sustainable competitive advantage to serve multinational organizations faced with evolving influences in a fast-changing financial world.

Workforce Management

Workforce management is poised to change significantly with stablecoin payouts. The growing gig economy, particularly in emerging and Global South markets, affects how and on what terms people work and get paid. 

As stated by the World Economic Forum, digital labour platforms have changed how millions of people earn their livelihood, offering flexibility, autonomy, and low entry barriers to join. This platform economy is projected to be a USD 2,1450 billion industry by 2033. 

Stablecoin payouts provide a frictionless and inclusive alternative payment for payment systems and payroll. Furthermore, they relate to workforce management tools to provide responsiveness and trustworthiness in regions with limited access to conventional payment systems.

1. Enhanced Flexibility for Gig and Contract Workers

Gig work is becoming increasingly widespread in various sectors across the Global South. Unfortunately, financial delays often diminish worker engagement and satisfaction. Stablecoin payouts can assist by:

  • Making the payment process seamless upon completion of the work task.

  • Eliminating delays and disputes associated with late or non-transfer transferring money;

  • Prompting self-employed workers to come back and work again, as they can rely on fast repeat payments.

2. Streamlined Global Connectivity

For companies with globally distributed teams, the traditional payroll system has several layers of complexity and delays. Stablecoins present a cohesive option for the following rationale:

  • HR platforms can have all workforce data and compensation in a single global dashboard

  • Employees receive immediate, reliably predictable remuneration, even in the absence of reasonable banking options

  • Employers minimize administrative burden and achieve flexibility to carry out more sophisticated workforce strategies

3. Improved People Metrics

Stablecoin-supported systems can provide real-time, robust financial data that is unavailable in legacy systems. This could dramatically improve decision-making about employment strategies:

  • The tracking of payouts in real-time is integrated with the attendance and performance records of the employee

  • Predictive analysis may reveal ingrained patterns of disengagement attributable to payment inefficiencies

  • Employers can adjust scheduling and improve turnover trends in a data-driven way.

Conclusion

Stablecoin payouts are an exciting new opportunity for organizations in the Global South. 

They solve so many of the traditionally expensive, lengthy, and ultimately exclusive challenges presented by the common forms of payment available today. 

For HR tech, this isn't just a conversation about payroll; it's about a more comprehensive transformation of how workforce management, compliance, and talent retention will function both individually and as part of a broader movement. 

Organizations adopting stablecoin-enabled systems will have the power to operate anywhere in the world, without barriers to inclusion. For HR tech companies, stablecoins will offer an even more exciting prospect by transforming them into a forward-thinking employer through the practical application of knowledge using virtual assets. 

In the context of the ever-growing acceptance of digital assets, the realistic question for HR tech firms should not be 'when should we be considering stablecoins?' but 'when should we implement stablecoins?'

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Frequently Asked Questions

Are stablecoins safer than traditional payouts?

Stablecoins eliminate some aspects of banking risk and also issues associated with currency fluctuation, and these companies will still need to offer secure wallets and enforce verification.

Entities must consider their risk and need to be compliant with AML, KYC, tax reporting, and local regulations for using stablecoins in payroll situations.

Stablecoins allow unbanked or underbanked workers to receive secure payments by pairing the stablecoin with a digital wallet, which adds traceability of the payment in a functionally similar method of payment as someone who has a bank account.

Modern HR technology allows integration of digital wallets, which may enhance the payroll process, create and distribute stablecoin/ cryptocurrency, and link the transaction with worker payroll and workforce technologies.

Legalities vary by country and jurisdiction, and while some countries have established regulations for digital assets, others are developing regulatory frameworks. Organizations need to consider their compliance with local law and the financial regimes.
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HRtech Staff Writer

The HRTech Staff Writer focuses on delivering in-depth analysis, industry trends, and actionable insights to HR professionals navigating the rapidly evolving tech landscape. With a background in HR technology and a passion for exploring how innovative solutions transform people strategies, the HRTech Staff Writer is committed to providing valuable perspectives on the future of HR. Their expertise spans a wide range of HR tech topics, including AI-driven platforms, automation, data analytics, and employee experience solutions.