Venezuela has reached one of the highest rates of cryptocurrency usage

By E.C.V. & ASOCIADOS

Chainanalysis, which provides blockchain data and analysis to government agencies, exchanges, and financial institutions across 40 countries, presented its 2020 Geography of Cryptocurrency Report Analysis of geographic trends in cryptocurrency adoption, usage, and regulation.

The report states that as cryptocurrency continues to gain popularity, everyone from banks to institutional investors to everyday consumers are taking notice and incorporating digital assets into their financial strategy.

Venezuela, specifically, has become one of the most active cryptocurrency trading countries on earth, as cryptocurrency has taken on an important role in the country’s economy. Venezuela has reached one of the highest rates of cryptocurrency usage in the world, placing third on the Global Crypto Adoption Index, as many Venezuelans rely on cryptocurrency to receive remittances from abroad and preserve their savings against hyperinflation.

Most of this activity is driven by P2P exchange activity, specifically on LocalBitcoins. LocalBitcoins has active users all over the world, yet Venezuela is the third-most active country on the platform, or second-most active when we scale by the number of internet users and purchasing power parity per capita.

“Venezuela represents an excellent example of what drives cryptocurrency adoption in developing countries and how citizens use it to mitigate economic instability,” the report highlights.