Venezuela's Crypto Resilience

Venezuela's recent crackdown on crypto is likely to satisfy enthusiasm for tokens. Data shows people in the nation remitted $461 million worth of coins in 2023. Despite extensive government action, crypto remains a popular remittance tool.

The crackdown has closed crypto exchanges and forced miners to shut down their rigs. The state-run crypto agency has also been shuttered. However, data from sources including the Inter-American Dialogue think tank, Bloomberg, and Chainalysis indicates that the popularity of crypto as a remittance tool grew in 2023.

Crypto Remittances Remain Popular

Per La Republica, the media outlet reported that the 'amount transmitted through cryptocurrencies likely reached a record 9% of all money sent [to Venezuela] last year.' The data shows that $9 of every $100 remitted to Venezuela was sent through tokens like Bitcoin (BTC).

The media outlet also noted that over 7.7 million people are thought to have left Venezuela in the past ten years. It wrote of an 'exodus' to US cities such as New York and Chicago.

The data further shows that in 2023, Venezuelans received more than $5.4 billion in remittances. That figure constitutes at least 6%' of the country's gross domestic product. The number represents a rise of nearly 75% in the total amount sent to the country in 2021.

The media outlet wrote, 'Over $461 million worth of remittances were made using crypto' in 2023. The media outlet added that peer-to-peer platforms 'have become popular among Venezuelans.'

These platforms reportedly 'let people exchange cryptocurrencies at the market rates, often bypassing official exchange controls.'

Venezuela: a Crypto U-Turn

The Venezuelan government has tried to encourage citizens to use crypto as a remittance tool. The government even launched an app named Patria, which allowed overseas Venezuelans to send crypto via state-operated channels.

The media outlet quoted a Venezuelan man whose name changed to Espinoza 'for his family's safety.' The man said he had used cryptocurrencies for many years before migrating' to Argentina. Espinoza said he sends remittances 'by buying USDT on Binance and depositing it in fiat' in a bank account in Venezuela.

The man said his parents could then access the fiat in his account.

Espinoza explained:

"This is the easiest way to send money to my family and save money. When I earned money in Argentine pesos, I converted the fiat to crypto so it wouldn't lose value."