As Venezuela’s economic crisis thickens, Venezuelans turn to crypto as the official currency becomes unstable. Venezuela, which ranked as the 13th country in the world for crypto adoption in a 2024 report, may soon move up the list due to an increase in crypto demand as the country’s economic crisis persists. Across the country, small and established businesses now allow consumers to pay for goods and services in crypto using Binance, Airtm, and other exchanges. Stablecoins like USDT are now popular payment options in the South American country.
National Currency Loses Value
Since Venezuela’s government stopped defending the Bolívar, the official currency, its value has gone down by 70%. This fiat collapse, coupled with hyperinflation, has resulted in the growing demand for cryptocurrency. With crypto, many avoid the uncertainty of the national currency and censorship affecting some banks in the country.
As a report reveals, crypto accounts for 10% of remittances in 2023. Many Venezuelans are choosing to transact directly in crypto rather than relying on the struggling local currency. The demand for cryptocurrency in this part of the world is driven by necessity. And to match the growing demand, more sellers are offering crypto payments to stay competitive.
As the country battles one of the biggest economic falls in the last two decades, cryptocurrency provides an avenue for Venezuelans to cope.
In the months to follow, crypto adoption is likely to spread further as tension grows in the country due to ongoing US sanctions. Internal issues, such as the fiat black market and some macroeconomic factors, may also cause the economic woes to linger.
