Fun

Venezuela’s Bitcoin Use Soars Amid Hyperinflation: 3rd on Global Crypto Adoption Index

News Feed - 2020-08-31 11:08:18

Venezuela"s Bitcoin Use Soars Amid Hyperinflation: 3rd on Global Crypto Adoption Index


Venezuelans have become increasingly interested in cryptocurrency as their country faces dire economic crisis and hyperinflation, a new study by blockchain data analytics firm Chainalysis shows. The firm’s Global Crypto Adoption Index ranks Venezuela third as “The country has reached one of the highest rates of cryptocurrency usage in the world.”Cryptocurrency Adoption Soars in Venezuela


Chainalysis published its study of Venezuela’s bitcoin usage Thursday, which is part of its upcoming 2020 Geography of Cryptocurrency Report.


“Venezuela is suffering through one of the worst economic crises in modern history, with its national currency, the bolivar, becoming practically worthless,” the firm wrote. “Under these circumstances, cryptocurrency has taken on an important role in Venezuela’s economy … As the Venezuelan bolivar has lost value in the midst of hyperinflation, Venezuela has become one of the most active cryptocurrency trading countries on earth.” The firm elaborated:The country has reached one of the highest rates of cryptocurrency usage in the world, placing third on our Global Crypto Adoption Index, as many Venezuelans rely on cryptocurrency to receive remittances from abroad and preserve their savings against hyperinflation.


Most of the crypto activity in Venezuela is driven by peer-to-peer (P2P) exchange activity, specifically on Localbitcoins, Chainalysis noted. “Venezuela is the third-most active country on the platform, or second-most active when we scale by the number of internet users and purchasing power parity per capita. Venezuela ranks 3rd for P2P trading volume in USD, after the U.S. and Russia.” Venezuelans are also using Bitcoin.com’s P2P marketplace to buy and sell bitcoin cash.Venezuela’s P2P volume in USD and bolivar during the period between July 2019 and June 2020. Source: Chainalysis


Chainalysis also discussed Venezuela’s national cryptocurrency, the petro, launched by the country’s “contested government, led by OFAC-sanctioned Nicolas Maduro and known for its corruption and human rights abuses.” In May, the U.S. put a $15 million bounty on Maduro and charged a number of top Venezuelan government officials with “narco-terrorism, corruption, drug trafficking and other criminal charges.”


Superintendencia Nacional de Criptoactivos y Actividades Conexas (Sunacrip) is the regulator of crypto activities in Venezuela. So far, seven crypto exchanges have been licensed to trade the petro. According to the Maduro government, petro adoption has been rising significantly. Recently, 305 Venezuelan municipalities agreed to collect tax in petro.


One of the approved exchanges is Criptolago. According to financial intelligence provider Sayari, the exchange is owned by Venezuela’s Zulia state, with the state’s governor, Omar Prieto, occupying a top management position. “Prieto is a staunch Maduro ally who is personally under U.S. sanctions for refusal to deliver humanitarian aid,” Chainalysis asserted.




Over the last year, Criptolago addresses received more than $380,000 worth of bitcoin over 3,916 transfers and sent more than $360,000 worth over 2,297 transfers. While the platform’s transfer volume grew over 13x in the past year, “it doesn’t appear that Criptolago is helping the Venezuelans struggling most,” the Chainalysis claims. The firm pointed out that crypto transactions worth $1,000 or more accounted for more than 75% of total transfer volume, but “the average Venezuelan earns just 72 cents per day, meaning very few of them could afford such transfers.” Furthermore, the overall number of transactions was under 1,000 per month.


An expert on Venezuela told the firm that “Criptolago’s transaction activity suggests the platform may be used primarily by individuals connected to the Maduro regime seeking to launder funds or move them out of Venezuela.” Nonetheless, Chainalysis affirmed:We do however, have a lot of anecdotal evidence that people in Venezuela have become increasingly interested in cryptocurrency.


“That fits with our interviews of cryptocurrency experts on the ground in Latin America — users not just in Venezuela, but in other countries facing harsh economic conditions, turn to cryptocurrency to preserve their savings in the face of monetary devaluation,” the firm emphasized. News.Bitcoin.com has also reported on several crypto initiatives to help people in Venezuela.


What do you think about Venezuela’s crypto adoption? Let us know in the comments section below.Defi Platform Uniswap Outpaces Coinbase Pro in Global Trade VolumeNEWS | 3 hours agoCiphertrace Allegedly Builds Monero-Tracing Tools, XMR Proponents DisagreeNEWS | 7 hours agoTags in this storyVenezuela Bitcoin, venezuela bitcoin adoption, venezuela bitcoin use, venezuela crypto, venezuela crypto adoption, venezuela cryptocurrency


Image Credits: Shutterstock, Pixabay, Wiki Commons, ChainalysisUse Bitcoin and Bitcoin Cash to play online casino games here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimerShow comments

News Feed

DOJ’s Tornado Cash arguments show ‘obvious disdain for privacy’ — Lawyer
Jesse Coghlan5 hours agoDOJ’s Tornado Cash arguments show ‘obvious disdain for privacy’ — LawyerDeFi Education Fund’s legal chief said the prosecutors’ arguments against Roman Storm’s motion to dismiss were
5 Takeaways on Ethereum 2.0 From Vitalik’s ‘Beast Mode’ Blog Posts
The Takeaway: Moving ETH from the Ethereum 2.0 blockchain to the old ethereum blockchain may be possible in the early months (or years) after launch, new research suggests. Due to changes in data storage structure, recal
Cardano Whales Offload 180 Million ADA In 5 Days – Smart Profit-Taking?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Over 1.9M Ethereum Positioned Between $1,457 And $1,598 – Can Bulls Hold Support?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Free Market Family: Goldbug Peter Schiff Asks the Bitcoin Community to Gift Crypto to His Son
Free Market Family: Goldbug Peter Schiff Asks the Bitcoin Community to Gift Crypto to His SonThe American libertarian, economist and financial commentator Peter Schiff has been crit
Iran to Shut Down Crypto Mining Farms Amid Record High Power Demand
Iran to Shut Down Crypto Mining Farms Amid Record High Power Demand Authorities in Iran plan to unplug licensed crypto mining facilities as electricity consumption in the country i
Bitcoin mining revenue peaked at $107M on BTC halving day
Arijit Sarkar59 minutes agoBitcoin mining revenue peaked at $107M on BTC halving dayMore than 3,000 investors wanting to be a part of Bitcoin’s history spent 37.7 BTC (worth $2.4 million) in fees alone to nab their sha
IMF: Crypto Could Soon Pose Risks to Countries’ Financial Stability
IMF: Crypto Could Soon Pose Risks to Countries’ Financial Stability Economists at the International Monetary Fund (IMF) say that “crypto assets are no longer on the fringe
XRP Bull Flag Targets $18: Analyst Sees 70% Chance Of Breakout
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
BCH Merchant Directories Now List 4,300 Bitcoin Cash-Accepting Businesses
BCH Merchant Directories Now List 4,300 Bitcoin Cash-Accepting Businesses Businesses around the world continue to adopt bitcoin cash (BCH) and in 2020 merchant acceptance continu
Brayden Lindrea8 hours agoElon Musk hits at SEC, DOJ amid suit to force testimony in Twitter probeElon Musk claims the SEC and DOJ are abusing their regulatory powers for personal and political gain to receive punitive a
Human Rights Advocates Insist Bitcoin ‘Provides Financial Inclusion’ — Refutes Claims in Critics’ Letter to US Congress
Human Rights Advocates Insist Bitcoin "Provides Financial Inclusion" — Refutes Claims in Critics" Letter to US Congress Human rights defenders from 20 countries have insisted tha