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In Venezuela, Bitcoin was not “adopted” in any formal political sense, it was out of necessity.
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Bitcoin became a tool for Venezuelans to preserve their savings.
The economic difficulties that Venezuela has faced in the last decade have served as a real-time laboratory to observe the utility of bitcoin (BTC) and cryptocurrencies.
According to Compass Mining, a platform specialized in Bitcoin mining hardware and services, the South American country «represents one of the truest demonstrations of the original promise of Bitcoin.»
For them, in an unstable economic environment, the largest digital currency on the market established itself as a fundamental tool for the preservation of heritage and the daily operations of millions of people.
The firm highlights that, unlike other cases of technological integration, the adoption of bitcoin in the Caribbean nation did not respond to coordinated government plans.
«Venezuela did not ‘adopt’ bitcoin in any formal political sense; “It was out of necessity,” says Compass Mining. Furthermore, they emphasize that what emerged was a silent, bottom-up monetary experiment. This, they argue, was driven by citizens looking for alternatives in the face of high inflation that stripped the bolivar of its basic functions as a reserve of value and medium of exchange.
The platform analysis also details the use of this digital asset and other pieces of the ecosystem. Stablecoins linked to the dollar stood out since They allowed Venezuelans to circumvent capital controls and a lack of cash.
The above has been documented by NoticiasVE, evidencing a growing adoption of these vehicles linked to the North American currency. USD Tether (USDT), the most valued stablecoin on the market, has intruded into the different Venezuelan socioeconomic strata. This, to the point where large, medium and small companies use this digital currency for their businesses.
Bitcoin has had a notable impact on remittances to Venezuela
Compass Mining highlights that, for many professionals and entrepreneurs, “bitcoin offered something unique: a portable, censorship-resistant store of value.”
This characteristic, they say, It was vital for those who had to emigrate. This is because they were able to transfer their savings in a way that the traditional banking system did not allow due to sanctions against the country.
The report also sheds light on the role of remittances. According to data cited by the firm, in 2023, approximately 9% of Venezuela’s remittances ($461 million of $5.4 billion) entered via cryptocurrencies.
Furthermore, they highlight that more than 30% of Venezuelan households receive remittances. “And a growing portion of those figures flow through cryptocurrencies rather than cash or transfer services,” they note. This, “significantly easing the burden of high fees and volatile exchange rates.”
Compass Mining concludes that “when a national currency fails, people don’t debate the theory; adopt what works. In this way, they emphasize that Venezuela is a global case study where bitcoin has gone from being a speculative investment. to a survival tool.