Cryptocurrencies are becoming a central part of the economy in Venezuela as citizens resort to digital assets to protect themselves from a collapant currency and more strict governmental controls.
From small family stores to large retail chains, stores throughout the country now accept cryptography through platforms such as Binance and AirTM. Some companies even use Stablecoins to pay employees, while universities have begun to offer courses dedicated to digital assets.
“There are many places that accept it now,” Buyer Victor Sousa, who paid the telephone accessories with USDT (USDT), said The Financial Times. “The plan is one day to have my savings in cryptography.”
Venezuela occupied the 13th place worldwide for cryptographic adoption, according to the 2024 chain crypto adoption index reportwhich pointed out a 110% increase in use in the year.
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Bolívar’s accident pushes Venezuelans to Crypto
The continuous slide of the Bolívar currency has intensified the demand for cryptography. 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).
“Venezuelans began using cryptocurrencies out of necessity,” said economist Aaron Olmos. He pointed out that they face inflation, low salaries, currency ‘shortage and difficulties in opening bank accounts.
However, access is not always soft. With US sanctions to the financial sector of Venezuela, Binance restricts the services related to sanctioned banks and individuals. Connectivity problems also hinder generalized use. Even so, experts say the ecosystem is resistant, according to the FT report.
The government’s position on cryptography remains inconsistent. Venezuela launched its own digital currency, The Petro, in 2018, but the project collapsed last year. The main exchange regulator was closed in 2023 after corruption accusations linked to oil -related transactions.
Coinlegraph contacted Binance to comment, but had not received an answer for publication.
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Cryptographic remittances in Venezuela
As Cointegraph reported, cryptographic remittances have become a crucial life line for Venezuelans as the country’s economy sinks more deeply into the crisis. In 2023, digital assets represented 9% of the $ 5.4 billion in remittances sent home, around $ 461 million.
Families depend more and more on cryptocurrencies on traditional services such as Western Union, which are overwhelmed by high rates, delays and currency shortage.
Meanwhile, military tensions are increasing between the United States and Venezuela. On Tuesday, Venezuela’s Minister of Defense announced the deployment of naval boats and drones to patrol the country’s Caribbean coast after Washington’s decision to send an amphibious squad of three warships, later united by a missile cruise and a nuclear motor submarine, to the region.
The accumulation occurs after the Trump administration accused President Nicolás Maduro of working with posters and expanding his search for Venezuelan leaders, doubleing the reward for the capture of Maduro at $ 50 million and offering $ 25 million for the Minister of Interior Diosdado Cabello.
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