Venezuela’s Crypto Remittances Remain Popular
Despite Venezuela’s recent crackdown on cryptocurrency, enthusiasm for tokens remains strong. In 2023, $461 million worth of coins were remitted to the nation, according to data from sources like the Inter-American Dialogue think tank, Bloomberg, and Chainalysis.
The government crackdown resulted in the closure of crypto exchanges and forced miners to shut down their rigs. Additionally, the state-run crypto agency was shuttered. However, these measures have not deterred people from using crypto for remittances.
A Record Year for Crypto Remittances
La Republica reported that the amount transmitted through cryptocurrencies reached a record 9% of all money sent to Venezuela in 2023. This means that $9 out of every $100 remitted to Venezuela was sent in the form of tokens such as Bitcoin (BTC).
Over the past decade, more than 7.7 million people have left Venezuela, with many migrating to US cities like New York and Chicago. In 2023, Venezuelans received over $5.4 billion in remittances, accounting for at least 6% of the country’s gross domestic product. This figure marks a nearly 75% increase in the total amount sent in 2021.
Popularity of Peer-to-Peer Platforms
The media outlet noted that peer-to-peer platforms have become increasingly popular among Venezuelans. These platforms allow people to exchange cryptocurrencies at market rates, often bypassing official exchange controls.
A Shift in Government Policy
In the past, the Venezuelan government encouraged citizens to use crypto for remittances, even launching an app named Patria for this purpose. This app allowed overseas Venezuelans to send crypto via state-operated channels.
Personal Experiences with Crypto Remittances
A Venezuelan man, whose name was changed to Espinoza for his family’s safety, shared his experience. He has been using cryptocurrencies for many years, even before migrating to Argentina. Espinoza sends remittances by buying USDT on Binance and depositing it in fiat in a bank account in Venezuela. His parents can then access the fiat in his account. He explained that this method is the easiest way to send money to his family and save money. When he earned money in Argentine pesos, he converted it to crypto to avoid losing value.
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