Cryptocurrencies are used as a savings reserve in Venezuela
Venezuelans use cryptocurrencies as a savings resource, given the limitations to carry out transactions
Venezuela is no stranger to the use of cryptocurrencies, but given the problems in carrying out transactions, citizens use these digital assets as a savings resource.
Although the South American nation has experienced a slowdown in inflation, the population sees scarce possibility of saving in bolivars, preferring cryptocurrencies to protect their money, according to Aaron Olmos, a specialist in the area.
The use of digital currencies decreased considerably compared to the period 2018 and 2019, when they were accepted in various businesses as a form of payment.
“In 2023, Venezuela ranked 40th out of 155 countries in Chainalysis’ Global Cryptocurrency Adoption Index, behind other Latin American countries such as Colombia (32), Mexico (16), Argentina (15) and Brazil (9), when in 2021 it ranked seventh on the world list. In 2022 it did not appear in the classification,” according to data from Ecoanalítica.
During that same year, the restructuring of the Superintendency of Cryptoactives and Related Activities (Sunacrip) was carried out, which dealt a blow to the sector, since companies licensed to operate in cryptocurrencies are suspended, indicates Olmos. This restructuring was extended in March of this year for an additional six months.
In parallel, the operators who are dedicated to trading continue to operate, with the country’s limitations regarding power outages.
M.Pino
Source: alnavio
(Reference image source: Traxer in Unsplash)
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