While many Venezuelan expatriates send remittances to their loved ones back home, $450 million was sent in cryptocurrency in 2023. In total, this represents 9% of the $5 billion in remittances studied.
Cryptocurrency money transfers are gaining momentum in Venezuela
For several years now, Venezuela is experiencing a catastrophic economic situationwith monstrous inflation rates weighing heavily on its citizens' finances.
For example, monthly inflation over one year was still over 50% last June, whereas it had already been over 400% the previous year:
Monthly inflation in Venezuela over one year
In this context, Venezuelan migrants living abroad send remittances to their relatives who remain behind, so that they can continue to support themselves.
Thus, Bloomberg reports that in 2023, $5 billion will have been sent for this purpose by the approximately 7.7 million Venezuelans who have left the country in the last 10 years. For this amount, 9% were sent in cryptocurrencieswhich represents no less than 450 million dollars in transfers.
👉 Also in the news – Salvador: cancellation of the Hilton hotel tokenization project in partnership with Bitfinex
While the West may struggle to grasp the value of cryptocurrencies in a relatively stable financial system, we are once again seeing the opportunity they represent for countries in difficulty. Indeed, while money transfer solutions such as Western Union and MoneyGram are still widely used, they generally involve significant fees, which can therefore discourage their use.
20 € offered when you register on Bitvavo
Sources: Bloomberg, Trading Economics
The #1 Crypto Newsletter 🍞
Receive a daily crypto news recap by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products, or services. Some links in this article may be affiliate links. This means that if you purchase a product or sign up for a site from this article, our partner pays us a commission. This allows us to continue to provide you with original and useful content. There is no impact on you and you can even get a bonus for using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers must do their own research before taking any action and only invest within the limits of their financial capacities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with a high return potential implies a high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of these savings. Do not invest if you are not prepared to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Since 2021, I have devoted my free time to seriously training myself on cryptocurrencies in order to acquire as much knowledge and credibility as possible. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyses on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
1239 articles
