Venezuelan Migrants Save on Fees Using Crypto for Remittance
Learn how Venezuelan Migrants remitted $461 Million in crypto in 2023 despite crackdown.
Despite Venezuela's recent crackdown on cryptocurrency, the nation's enthusiasm for digital currency remains undiminished. In 2023, Venezuelans remitted $461 million worth of crypto. This reflects the growing popularity of cryptocurrencies. They are being used as a tool for remittances.
The crackdown led to the closure of crypto exchanges and miners were forced to shut down their operations. The state-run crypto agency was also dissolved. Nevertheless, data from sources such as the Inter-American Dialogue think tank, Bloomberg and Chainalysis indicate that crypto remittances in Venezuela reached record levels in 2023.
La Republica reported that cryptocurrencies accounted for 9% of all remittances to Venezuela last year. $9 out of every $100 were sent in tokens like Bitcoin (BTC). The country received over $5.4 billion in remittances in 2023. This represented at least 6% of its gross domestic product (GDP). This marks a significant increase of nearly 75% from the total remittances sent in 2021.
“This is the easiest way I’ve found to send money to my family and also save money. When I earned money in Argentine pesos, I converted the fiat to crypto so it wouldn’t lose value.”- A Venezuelian migrant worker
Venezuela's ongoing economic crisis has driven an exodus of over 7.7 million people in the past decade. Many have settled in US cities like New York. Others in Chicago. Amidst challenging conditions, peer-to-peer crypto platforms have gained popularity among Venezuelans. These platforms enable users to exchange cryptocurrencies at market rates. Often bypassing official exchange controls.
In previous years the Venezuelan government attempted to promote crypto usage for remittances. It launched the Patria app to facilitate the process through state-operated channels. A Venezuelan expatriate pseudonymously named Espinoza for safety reasons shared his experience. He explained that he buys USDT on Binance. Deposits it in a Venezuelan bank account allowing his family to access funds in fiat currency.
Despite regulatory crackdowns, Venezuelans continue to rely on cryptocurrencies for remittances. With $461 million worth of crypto sent in 2023. Accounting for 9% of total remittances. This trend highlights the resilience. And adaptability of crypto users in navigating economic challenges.
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