Over the past few years, South America has been one of the countries that have been most bullish on bitcoin and cryptocurrency. Specifically, in Venezuela. This country uses Cryptocurrency as a way to fight back against oppression and the volatility of its Fiat currency. The government in Venezuela is pushing to create a Cryptocurrency centred economy now and appears to be working. However, many officials probably didn’t intend it to work in such a way.
This comes from a report recently published by Chainalysis. The company revealed that the company country ranks third in the world for crypto adoption. This makes them behind Ukraine and Russia.
In an interview, Kim Grauer, research lead at Chainalysis said the following:
“The reason why it ranks so highly is the peer-to-peer marketplaces. That’s why Venezuela stood out to us.”
According to the data, the country is growing tired of the hyperinflation in the country. This is why many people are turning to bitcoin as a safe haven of sorts.
One platform owned by the Venezuelan state of Zulia, Criptolago profited less than $400,000 in dollar adjusted volume over the past 12 months.
Even so, things are increasing on the platform as in July this year, it’s trading volume was 13 times higher than it was in 2019. Grauer said:
“From what we can identify, most of the activity on Criptolago is really large. It’s just those transfers that are driving the [exchange’s] growth overall.”
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!
