Digital Asset Remittances in Venezuelans have significantly increased, with crypto numbers booming last year.
Over $460 million in Bitcoin remittances have been sent by Venezuelans in the last 12 months, a record high. Remittances have generally increased in the nation as a result of the severe economic conditions that drove a large number of migrants. The graph illustrates how the use of cryptocurrencies has increased in Latin America and other regions during the past year.
Venezuelans Adopt Digital Currency Remittances
Venezuelans are using cryptocurrency for more transactions, as the country’s overall statistics have improved over the past year. The Inter-American Dialogue reports that Venezuelan remittances totaled approximately $5.4 billion, or 6% of the country’s GDP. The growth rate represents about a 75% increase from 2021.
Remittances in cryptocurrency reached $461 million, or 9% of overall figures, according to Chainalysis data. Even though the numbers are impressive, many migrants cannot send remittances because of their financial situation, according to Manuel Orozco, director of Migration, Remittances, and Development at the Inter-American Dialogue. Remittances from migrants from Venezuela have increased by 50–60%. It’s not a more significant proportion because the remaining migrants can still not transmit money.
Venezuela experienced an economic crisis that resulted in migration, which resulted in a significant increase in remittances. Approximately 30% of households received funds from foreign countries. Over the past decade, more than 7 million Venezuelans have departed the country, sending money back home digitally.
Utilizing crypto assets offers a more accessible alternative to conventional remittance methods, which appear more costly and protracted. Nevertheless, crypto users in their home countries are subject to specific regulations regarding certain digital asset exchanges, with many advocating for pro-industry legislation.
Adoption of Cryptocurrency is on the rise
Venezuela is not the only nation experiencing increased crypto remittances as global adoption persists. Traditional methods for remittances are more expensive, with rates reaching as high as 7%. In contrast, crypto provides a quicker and more cost-effective alternative. Additionally, the price increase of crypto assets this year has rendered coins more appealing to most users. Some holders are attracted to Bitcoin due to its transactional value, while others emphasize its inflation-mitigating capabilities.
