We know that South America is very bullish on crypto in general with millions of people hedging against their national fiat currencies by investing in Bitcoin and Ethereum. The trend among SA countries is quite apparent as we see massive surges of BTC and ETH popularity in Peru, Cuba, Argentina, and many other countries.
An important thing to note is that Peruvians have been slowly shifting to using their Sol-pegged PEN to buy goods and services while many are investing in different types of crypto assets to hedge against the inflation which has already destroyed the Venezuelan economy. Even more impressive is that the latter has been increasing its daily trading volume of BTC and ETH steadily ever since its economic collapse.
A recent study revealed that over 3.5 million citizens in Venezuela are actively trading different coins with BTC, ETH, and ADA enjoying popularity among locals the most. 3.5 million equals roughly 18% of the population meaning that close to 1/5 of the whole country is familiar with cryptocurrencies and how to trade them. Despite the monthly wage being close to just $16, the country continues to exchange cryptos with BTC trading volume reaching an impressive (comparatively) mark of 130BTC in August.
The country was completely devastated by rampant inflation and the lack of necessities like food and fuel. Over 20% of all citizens (according to some reports) have left the country (some by foot) to look for opportunities elsewhere. Those who decided to stay faced a new economic reality where the market is flooded with all sorts of currencies including Colombian Pesos, Brazilian Rial, USD, euros, and, most importantly crypto.
The scale of adoption in Venezuela is not a voluntary choice. It is a necessity that many people had to opt for to be able to pay for food. Nevertheless, it is a promising development as the country will try to navigate its way out of the crisis and will need a solid monetary system in which cryptocurrencies may play a crucial role! With cryptos being widely used in neighboring countries, fully embracing BTC and ETH could be the only right course for the Venezuelan economy.