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As Venezuela recovers from a severe economic crisis, many families are increasingly relying on cryptocurrency for remittances, cash payments sent by relatives abroad. Traditionally, these payments are sent through international banks or services like Western Union, which often have high transaction fees and slow processing times. Due to the bolivar’s volatility and governmental restrictions, cryptocurrency offers a faster alternative. Over the past decade, Venezuela has become heavily dependent on remittances, with around 30% of households receiving such payments. In the last year alone, 9% of these remittances were sent via cryptocurrency, representing a significant increase. The country has seen over 7.7 million migrants leave in the last decade, and the Venezuelan immigrant population in the U.S. has surged, affecting cities like New York and Chicago. This rise in migration may influence the U.S. presidential election. In 2023, Venezuelans received more than $5.4 billion in remittances, with $461 million sent through cryptocurrencies. The jump in remittances is partly due to migrants’ efforts to support those they left behind. For example, Paola Moncrieff uses Dogecoin and Binance to transfer funds to her relatives, highlighting the growing role of cryptocurrency in these transactions. The use of cryptocurrency has become a crucial method for sending remittances to Venezuela, providing an alternative to traditional exchange methods hampered by economic instability. While appealing due to the avoidance of official exchange controls, this method is fraught with risks including price volatility and regulatory uncertainties. Peer-to-peer platforms facilitate the exchange of crypto into bolivars, but carry potential dangers such as fraud. Despite these challenges, individuals like Moncrieff and Espinoza find crypto valuable for quickly transferring and holding value amidst severe economic conditions. Binance remains a popular exchange despite its regulatory issues. Original Text by by María Paula Mijares Torres, publishes in -> Bloomberg
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