- Crypto adoption has been on the rise in Latin America and other regions during the last year.
- An estimated $5.4 billion, or 6% of GDP, was sent back by Venezuelans.
Cryptocurrency remittances to Venezuela have increased dramatically in the last year, reaching over $460 million. In general, the country’s remittances have increased as a result of the large number of migrants caused by the severe economic circumstances. Crypto adoption has been on the rise in Latin America and other regions during the last year.
Coincident with the overall jump in statistics over the last year, Venezuelans have ramped up their use of cryptocurrency for transactions. An estimated $5.4 billion, or 6% of GDP, was sent back by Venezuelans, according to figures from the Inter-American Dialogue. To provide some context, this is an increase of over 75% from 2021 levels.
Crypto remittances reached $461 million, accounting for 9% of the total, according to Chainalysis statistics. Despite the high numbers, many migrants are unable to send remittances, according to Manuel Orozco of the Inter-American Dialogue’s Migration, Remittances, and Development.
Simpler Alternative
There has been a 50% to 60% increase in the number of migrant workers from Venezuela sending money back home. Because most migrants still lack the financial means to send money, the actual proportion is lower.
About 30% of Venezuelan families received funds from outside the nation as the country’s economic crisis prompted migration. More than seven million Venezuelans have left the nation and sent money back via electronic means in the last decade.
Crypto assets provide a simpler alternative to conventional transfer systems, which seem to be slower and more costly. Nevertheless, crypto consumers in their native country encounter specific limitations regarding digital asset exchanges, prompting several to advocate for pro-industry legislation.
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