Venezuela’s growing crypto adoption says it all

On the 7th place in Chainalysis’ world crypto adoption ranking, Venezuela is a country that can end any crypto-skeptic debate in a matter of seconds.

It is poor, and hyperinflation and the US sanctions hinder its chances to get better: how do you accumulate capital if your money is losing value by the second, and international commerce is restricted?.. Luckily there’s Bitcoin: available to every person with a smartphone, it offers an alternative money system that can help Venezuela develop its economy.

Bitcoin has become a major tool to hedge from the raging inflation, help businesses manage their cash flow, send remittances (money sent to their families by Venezuelans working aboad) and otherwise financially communicate with the world. With an equivalent of $629M received yearly on P2P exchanges (Chainalysis), Venezuela is the biggest Bitcoin user in Latin America.

Local merchants increasingly use crypto for their operations, and numerous fast food chains (Pizza Hut, Burger King etc) accept cryptocurrencies, as do natinal airline and, most recently, the Simón Bolívar International Airport.

How is the government treating crypto? After the launch in 2018 of the oil-pegged coin petro, which did not gain the popularity that President Maduro hoped for, Venezuela recently launched its CBDC, which is basically the old inflation-rigged bolivar, but in a digitized form. It’s nice to see such enthusiasm for digital tools, but we believe that these efforts are doomed as long as the system is centralized.

Bitcoin, on the other hand, has the qualities really needed by Venezuelans, and its growing adoption says it all.