Cryptocurrency crisis may affect Venezuelans. Last Minute WORLD headlines and events

CARACAS –

One of the countries most affected by the slump in the cryptocurrency markets and bankruptcy filings is Venezuela, where at least 10 percent of the population uses cryptocurrencies for reasons such as currency instability and high inflation.

One of the countries most affected by events such as the price of bitcoin falling below $18,000, which at the beginning of this year exceeded $46,000, and the process of bankruptcy of many platforms, including FTX, one of the largest cryptocurrency exchanges in the world. world, is one of the most affected countries in Latin America. Venezuela, the country with the largest number of cryptocurrencies.

In Venezuela, where the size of the crypto money market is estimated at close to $1 billion a year, according to the UN, about 3 million Venezuelans, i.e. more than 10 percent of the population, use crypto money. Actors using cryptocurrencies in the country include the government subject to international economic sanctions, people involved in trade and those who want to protect or value their savings from exchange rate appreciation and high inflation.

Aaron Olmos

According to reports from Chainanalysis, Coinpayments, and TripleA, one of the leading cryptocurrency data analysis companies, Venezuelan cryptocurrency expert and economist Aaron Olmos notes that Venezuela is among the countries that deal with the most cryptocurrencies in the world.

Speaking to the Turkish Voice of America, Olmos said that as a result of the crisis that began to escalate in 2015, the use of crypto money in Venezuela is more common than in most countries, for example, medicines, electronic goods and some services can be paid with crypto money. . In Venezuela, which has its own digital currency called Petro, although it is not used: “Today, the majority of cryptocurrency users are university students, small shopkeepers and white-collar workers. However, among users there are those who do not want to pay fees to banks for transferring currency abroad or who have problems with banks, owners of large investments and the state.

Noting that the use of cryptocurrencies has increased in countries with high inflation, rising exchange rates and access to foreign currencies, the economist said that Venezuela is the country that uses cryptocurrencies the most in Latin America, but the lack of official data makes this difficult. give clear numbers.

While stating that people who have invested most or all of their savings in volatile cryptocurrencies have been hardest hit by the crisis, the economist said that during the crisis, most users turned to stable and dollar-indexed cryptocurrencies.

Noting that Venezuela is in the top three in 2020 and in the top seven last year in the list of countries acquiring bitcoins in the world, Olmos said that the growing trend in cryptocurrencies in recent years is attracting more attention from users who want to protect their savings or increase his savings in a short time. He says that the money is used to make payments and receive foreign exchange, and not an investment vehicle.

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