The post Venezuela crypto remittances accelerate despite Binance ban appeared on BitcoinEthereumNews.com.

Venezuela still relies heavily on crypto remittances, amid economic insecurity and the depreciation of the local currency. Remittances continue despite cutting access to the Binance P2P market.  Venezuela was one of the hotspots for everyday crypto usage, as a hedge against inflation. In 2024, remittances from abroad are one of the main use cases for crypto in the country. Crypto has a small, but growing share in remittances to the country, competing with banks and the bulk effect of unlicensed money transfers.  Chainalysis shows data from retail wallets reaching the country, with crypto making up as much as 9% of all remittances.  The Venezuelan bolivar has lost more than 93% of its value against the US dollar over the last decade. Added to the global inflation, Venezuela has resorted to crypto as a way to store value and circumvent riskier and more expensive remittance options.  In the past few years, estimated remittances made between 3 and 6% of the Venezuelan GDP, similar to other developing countries in the region.  Remittances to Latin America increased rapidly during the post-pandemic years, starting with peak growth in 2021. Only a fraction are in the form of personal remittances. For Latin America, the World Bank notes that remittances are even larger than foreign direct investments.  Venezuela Crypto Remittances Soaring as Size of Diaspora Grows After the skyrocketing migration crisis, about 30% of Venezuelans began receiving remittances, according to Inter-American Dialogue. The amount transmitted via crypto likely reached a record 9% per Chainalysis. pic.twitter.com/56nMMiRLKh — matthew sigel, recovering CFA (@matthew_sigel) August 14, 2024 Migration and economic crisis accelerated remittances Venezuela received up to $5.4B in total remittances in 2023, up from $4.2B in 2022. The funds reach up to 2.5M households, or close to 29% of all Venezuelan citizens. Around 38% of the inflows come…

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Filed under: News - @ August 15, 2024 9:22 am