As Venezuela faces soaring inflation and a plummeting bolívar, cryptocurrency use is increasingly becoming essential for daily transactions. Many citizens are turning to stablecoins to protect their finances, with acceptance of digital assets growing from small shops to major retailers. Reports indicate that Venezuela ranks 13th globally in crypto adoption, highlighting a 110% increase in usage over the past year. The bolívar has depreciated over 70% since the government halted its defense, while inflation reached an alarming 229% in May. The use of cryptocurrencies has stemmed from necessity due to economic hardship, low wages, and limited access to foreign currency. However, challenges remain, including U.S. sanctions that restrict access to services like Binance and connectivity issues. Despite an inconsistent government stance on crypto—like the launch of the state-backed petro in 2018—the demand for digital currencies continues to rise, bolstered by their efficiency compared to traditional remittance services. In 2023, 9% of remittances were sent in crypto, reflecting a significant shift towards digital assets amidst the ongoing economic crisis.

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