According to media investigations, sex workers in the US have started switching to cryptocurrencies as savings plans, especially for retirement. Many had already started accepting cryptocurrencies as payments for services rendered, however, they would usually be converted to fiat currencies immediately. Now, however, the trend is changing, where more and more sex workers are putting away cryptocurrencies as savings in hardware wallets.
Why the Shift to Cryptocurrencies?
One of the reasons why sex workers are moving towards keeping their savings in cryptocurrencies rather than converting them to fiat currencies is the surge in cryptocurrency prices. It has now become more rewarding to keep digital coins as they are rather than convert them into traditional cash.
The main reason, however, is because banks in the US have made it even more difficult for people in this industry to get most types of financial services. Earlier, sex workers could not get payment processing done through banks, however, now most mainstream services have been blocked for people in this industry.
According to one of the workers who was interviewed, more and more banks are looking at any form of sex work as high risk and therefore a larger number of banks are now flatly refusing financial services to them.
Sex workers – a category that is rather broad and includes not just “escorts”, but also legally employed erotic dancers and professionals from the adult entertainment industry – are now facing a challenge where keeping money in traditional bank accounts has become risky, since banks could freeze their funds or even close their accounts without any warning.
Since many are scared that even cryptocurrencies platforms may begin to withhold their services from workers for the sex industry, they are moving their funds into hardware, offline wallets as future savings.
Trend Expected to Grow
Despite the process of moving their funds into hardware wallets regularly being rather cumbersome, people in the industry expect this trend to grow. This is actually an unexpected consequence of recently passed regulations that are pending legislation.
Firstly, the SESTA/FESTA legislation package was passed in the US in March this year, which basically combined definitions of consensual sex with sex trafficking, and reduced legal protection for internet service providers being used by the sex workers. Another bill is also on its way to Congress, one that could end up totally criminalizing any form of sex trafficking.
The interesting thing is that most legitimate sex workers do not want to work outside the law and also pay their taxes. Most of them ensure that they do everything they can to work within the limits of the law, so this discrimination against them being able to save money for their future is a huge challenge that they are trying to overcome. And cryptocurrencies currently seem to be the only way.