Cryptocurrencies become an essential element of the economy in Venezuela while citizens turn to digital assets to protect themselves from an collapsed currency and more strict government controls.
Small family stores with large retail channels, stores across the country now accept crypto via platforms such as Binance and AirTM. Some companies even use stablecoins to pay employees, while universities have started to offer courses dedicated to digital assets.
“There are many places that accept it now,” said Buyer Victor Sousa, who paid telephone accessories with USDT (USDT), at the Financial Times. “The plan is to one day have my crypto savings.”
Venezuela ranked 13th in the world for the adoption of cryptography, according to the report of the chain’s crypto adoption index analysis 2024, which noted an increase of 110% of the use of the year.
In relation: Venezuela blocks Binance, X in the middle of the presidential election dispute
The Bolívar accident pushes the Venezuelans in the crypto
The continuous slide from Bolívar currency has intensified crypto demand. Since the government stopped defending the currency in October, it has lost more than 70% of its value. Inflation reached 229% in May, according to the Venezuelan Finance Observatory (OVF).
“The Venezuelans began to use cryptocurrencies by necessity,” said economist Aarón Olmos. He noted that they are faced with inflation, low wages, shortages of foreign currencies and the difficulty of opening bank accounts.
However, access is not always smooth. With American sanctions against the financial sector of Venezuela, Binance restricts the services linked to banks and sanctioned individuals. Connectivity problems also hinder generalized use. However, experts say that the ecosystem is resilient, according to the FT report.
The government’s position on the crypto remains incoherent. Venezuela launched its own digital currency, the Petro, in 2018, but the project collapsed last year. The main exchange of the exchange was closed in 2023 following corruption allegations linked to transactions related to oil.
Cointelegraph stretched out Binance to comment, but had not received an answer by publication.
In relation: Venezuela’s Bitcoin reserve plan must first overcome political disorders
Crypto remittances Surge in Venezuela
As Cintelelegraph reported, cryptographic funds have become a crucial rescue buoy for Venezuelans while the country’s economy sinks deeper into the crisis. In 2023, digital assets represented 9% of the $ 5.4 billion in funds sent to them, or around $ 461 million.
Families are counting more and more on cryptocurrencies compared to traditional services such as Western Union, which are weighed down by high costs, delays and currency shortages.
Meanwhile, military tensions are increasing between the United States and Venezuela. On Tuesday, the Minister of Defense of Venezuela announced the deployment of ships and naval drones to patrol the country’s Caribbean coast following Washington’s decision to send an amphibious squadron of three warships, later joined by a missile cruiser and a nuclear propulsion submarine.
The accumulation comes after the Trump administration accused President Nicolás Maduro of working with the cartels and has expanded his pursuit of Venezuelan leaders, doubling the reward for the capture of Maduro at $ 50 million and offering 25 million dollars for the Minister of the Interior Diosdado Cabello.
Review: Can private life survive the policy of American crypto after the conviction of Roman Storm?
