The country, unexpectedly, ranks third in the world for crypto adoption, according to the data of Chainalysis metrics. People living in the country regard Bitcoin as safe haven for their funds to preserve the value of their assets.
The researcher Kim Grauer who works for analytics company Chainalysis made a conclusion that the progress is explained by the activity of p2p marketplaces therefore the country made such a breakthrough in the sphere of crypto adoption. Users get their crypto funds from p2p trading platforms LocalBitcoins and Paxful. However, there are other factors as well that contribute to the popularity of these marketplaces and Bitcoin, in particular.
The background for the mainstream adoption of crypto
It’s also worth remembering that the government of the country try their best to make the society accept Petro, the national cryptocurrency backed by oil. The influence of these actions and the integration of a new cryptocurrency to the economy are also noticed. All these measures make crypto mainstream for the Venezuelan society. The main factor is that people are so tired of hyperinflation that they started to buy digital assets as a way to preserve the value of their fiat money.
There are seven cryptocurrency exchanges in Venezuela approved by the government. Criptolago is one of these trading platforms. The company is a property of the Venezuelan state of Zulia. Its trading volume reached 380k USD last year. If we look at the figures for the platform’s trading volume in July 2020, we will notice that the transfer volume has become 13 times higher than a year before it.
When people are tired of the government’s policy and afraid of fees and taxes, they apply to Bitcoin as they trust this cryptocurrency more than any other asset.