Venezuela is going through an economic crisis and, as monetary inflation proliferates, the Bolivar becomes increasingly useless. As a result of all these challenges facing the Latin American country; Its citizens have turned to cryptocurrencies to save the day.
Published excerpts from an upcoming Chainalysis report indicate that the Bolívar, Venezuela's national currency, has lost value. As such, its citizens have turned to the use of cryptocurrencies like bitcoin for daily transactions, making Venezuela the third-most active cryptocurrency trading country in the world today, after the United States and Russia.
The report suggested that Venezuelan citizens "They are probably putting a large part of their wealth in cryptocurrencies." This is to protect against hyperinflation in the country. Also, due to the current situation in the country, many Venezuelan citizens are leaving the country in search of a greener pasture.
They generally send money to their families at home using cryptocurrency, as it is still the fastest and cheapest means of sending money abroad. These are just a few use cases in which cryptocurrencies are used in the country.
Local records show cryptocurrencies are changing hands nationwide
LocalBitcoins also records increasing bitcoin trade over time. This shows that the cryptocurrency is strongly changing hands in the country.
Criptolago, one of the country's native cryptocurrency exchanges, has also been used considerably over the past year. Addresses on this exchange have received over $ 380,000 worth of Bitcoin during 3,916 transfers and have sent over $ 360,000 worth 2,297 transfers.
Despite all this data, Peter McCormack, who spent some time in Venezuela before, believes that calling Venezuela a cryptocurrency hub is simply an exaggeration. Although he admits that citizens will accept cryptocurrencies of any kind, he also says that they will almost instantly hand them out for a dollar.