- Venezuela has been ranked third by Chainalysis on the basis of worldwide cryptocurrency adoption.
- The first and second place are secured by Ukraine and Russia respectively.
- cryptocurrencies have performed an outstanding role which can be seen by its high crypto usage. The citizens immensely depend on crypto assets to receive remittance and to protect their funds from hyperinflation.
Venezuela has been ranked third by Chainalysis on the basis of worldwide cryptocurrency adoption. The first and second place are secured by Ukraine and Russia respectively. In this regard Weiss crypto ratings have tweeted that the reason is its outstanding performance in peer to peer marketplaces. According to them people who need cryptocurrency the most are the people who tend to use them most.
Cryptocurrency Used to Cope up With Hyperinflation
Despite prolonged political and economic instability the cryptocurrency adoption in the country is healthy. The Venezuelan Bolivar has lost its value tremendously and in addition the hyperinflation rates had striked 10,000,000% the last year. The country which once used to be the wealthiest in the Latin America now faces electricity and water shortage, hospitals which are merely buildings with no supply. The crisis in Venezuela has deepened clearly and has affected almost every Venezuelan. In such circumstances, cryptocurrencies have performed an outstanding role which can be seen by its high crypto usage. The citizens immensely depend on crypto assets to receive remittance and to protect their funds from hyperinflation.
Outstanding P2P Network Performance
Venezuelan government had adopted crypto technology long ago when it introduced Petro for the first time. Petro is the national digital currency of Venezuela and is backed by the oil reserves of the country. Owing to hyperinflation, the country has become a hotspot for cryptocurrency activities. As mentioned above the P2P ranking of Venezuela is third only after the crypto hubs, the US and Russia. Back in June almost over 20000 shops in Venezuela began accepting cryptocurrency in exchange for their products and services. Another step towards the growing cryptocurrency adoption.
Corruption Still Prevails, Suggests Criptoago’s Data
Criptolago, a cryptocurrency exchange that is based on the Zillia state of Venezuela reported some relevant growth. The addresses of the exchange notified deposits worth $380,000 in 3,916 transfers. And cryptocurrencies worth $360,000 were sent in 2,297 transfers. The data suggests that trading volumes over the exchange has appreciated by almost 13 times considering the last year.
However, critical research revealed that the exchange’s growth was mostly influenced by elite investors in Venezuela. An average Venezuelan earns a meagre 70 cents a day whereas almost 3/4th of the transactions were of $1000 or more. This directly hints to the corruption prevailing in the state and more specifically in Maduro’s regime.
However, the growing adoption in the country can be easily explained by the citizens who are trying to regain the lost economic glory of the country. In this case cryptocurrency is a powerful tool for them.