Venezuela: The Third Country With Maximum Crypto Adoption

Crypto adoption has been on the rise for the past few years. 

Many big companies including Paypal, Coca-Cola, Microsoft, Goldman Sachs, Burger King, Square, Expedia, and more have taken initiative in accepting cryptocurrencies as the payment mode. 

It is an answer to the Bitcoin skeptics who doubted the existence of the cryptocurrency wave. Yes, there is a big risk factor of volatility, that results in unexpected changes in the prices of digital currencies. 

Still, that does not make investors finding an escape route. They remain inquisitive in betting on Bitcoin for investment. 

And now with the availability of several altcoins, they get more options to switch on. 

When it comes to discussing countries with maximum crypto adoption, then America indeed takes the lead followed by Canada, China, Ukraine, Russia, Kenya, Nigeria, etc. 

The South American country which comes third in the world with maximum cryptocurrencies is Venezuela, according to a report in 2020. 

People living in this country have been dealing with the toughest phase of inflation and falling buying power. 

But the point that makes us think are the real figures behind the financial crisis that prompted the people of Venezuela to change their living standards. 

How Decision Of Crypto Adoption Took Place In Venezuela

Venezuela became the third popular among the countries that took initiative in accepting digital currencies. It all came clear with a report by a Blockchain analysis software company in 2020. 

The main factors that led to the rise of crypto adoption were the economic fall down that resulted due to false financial policies and corruption. 

What appears to be noteworthy is how the people living in Venezuela are living amid such a serious financial crunch. 

The other question is what made a richer country like Venezuela going through inflationary turmoil in mere few years?

It is very complex to determine the numbers that define the economic upheaval since official organizations had retained it for years. 

Still, many sources are not official that help knows the enormity of this monetary crash.

Financial Crashdown In Venezuela

While discussing the inflationary numbers, the economy of Venezuela rose to more than 60% annually, in 2014. 

From this year, the graph of inflation got worse every year but coming up to the next following year (2015) the apex bank of Venezuela intercepted in giving more official figures. 

Because of this, it became impossible to know the ongoing status of the latter country. 

Then in the later year 2018, the IMF (International Monetary Fund) speculated about the annual inflation figure which might be around 1000K%. 

This figure showcased the worst financial situation of Venezuela when hit with hyperinflation. People in Venezuela suffered a major phase of poverty within a decade. 

The national currency holding the status of value storage was demolished by Venezuelans. 

Exchange Control

Then came the establishment of exchange control long ago in 2003 with the advent of CADIVI. 

This institution emphasized upon the dollar's distribution to the businessperson and population, as per the limits directed by the Venezuela government. 

CADIVI took a significant move in setting the official price for the USD. 

But this led to the creation of a black market, where dollars were given for free with a high exchange rate in comparison to the official price of the dollar. 

Rise of Crypto Adoption

All the above negative factors that brought massive monetary turbulence in the country ignited the rise of crypto adoption. 

The best advantage of this new digital money technology is the absence of any strict regulation from the government and is unaffected to any other rural issues. 

One of the top cryptocurrency exchanges in the world, Binance finds its best use in Venezuela for the exchange of dollars or bolivares. Another top exchange referred to here is Localbitcoins. 

The dollar is the much-used fiat currency for retail buying in this South American country. 

According to a local company, Ecoanalitica, crypto adoption has become a remarkable part among the people of Venezuela. 

It is considered as an opportunity for saving their buying power. 

Global Crypto Adoption Index

Apart from the South American country Venezuela, where crypto adoption has risen to mainstream level, other countries have also come in support of cryptocurrency use. 

As per the new report from a blockchain research company, there are around ten nations where digital currencies are finding the best use. 

Among these are two economically developed countries. One is the United States of America and the other one is dragon country, China. 

Chainalysis has also come up with a new technique of measuring the ongoing activity of a digital currency among rural people worldwide. 

This is the Global Crypto Adoption Index. The main focus is to reveal those countries that show residents' inclination towards cryptocurrency use. 

Ending note

So this is how crypto adoption is becoming the mainstream technology in the world economy. To explore other topics like Bitcoin opinion 2.0, then better log on to the Cryptoknowmics site.