Demand For Cryptocurrency Reaches Record Levels In Venezuela
Considering the protracted economic crisis in Venezuela, the demand for bitcoin and other digital currencies has grown dramatically, CCN reports.
During the period September 24–30, the total amount of bitcoin transactions equaled 300 million bolivars (VES), and it is assumed that the upward trend of the BTC/VES currency pair will continue, as on October 1, traders carried out bitcoin operations worth more than 292 million bolivars.
Source: Coin Dance
According to the International Organization for Migration, due to the aggravating crisis in the country, more and more people are leaving Venezuela. Thus, according to statistics, more than 1.5 million citizens have immigrated to other states, including Peru, Colombia, Brazil, and Argentina over the past three years.
Experts identify two main reasons for the rapid growth in trading volumes of the BTC/VES pair. First, it is a sort of financial assets insurance through investments in bitcoin and other digital currencies with regard to the increasing inflation rate. Secondly, the record high demand for digital assets is due to the tearing bolivar devaluation over the past few weeks.
After the national currency depreciated by 95%, Venezuelan President Nicolás Maduro announced the introduction of a new sovereign bolivar, which is pegged to El Petro, the state digital currency issued this winter.
Thus, the government wanted to avoid the negative outcomes of imposed sanctions and gain access to the international financial system.
As previously reported, Venezuelan national cryptocurrency El Petro has not been used to date neither in crypto transactions, nor on crypto exchanges, nor applied as a means of payments.