Stablecoins for Venezuelan Remittances
Goncalvez says Venezuela is the “stablecoin capital of the world” as millions of Venezuelan expats are using these digital assets to send remittances back home.
With 8 million Venezuelans living abroad due to the economic and political crisis, stablecoins are a way to send money across borders.
Traditional banking and fiat currency transfers are seen as unreliable so stablecoins are the preferred option for those sending money from countries like Colombia, Brazil, Peru and Argentina.
In the last few months this trend has accelerated, especially after the contested July election. Many are using stablecoins as a safe haven during the political instability.
El Dorado’s heatmap shows the high volume of stablecoin remittances coming into Venezuela from its neighboring countries where large Venezuelan communities live.
El Dorado’s Stablecoin Focus is the Secret to Success
El Dorado’s strategy of only focusing on stablecoins like USDT and USDC has made the platform successful, surpassing Binance in the Venezuelan market.
By simplifying the offerings, El Dorado caters to local demand, a platform easy to use without listing thousands of tokens. Goncalvez says this stablecoin focus has made El Dorado one of the top financial apps in Venezuela.
“While Binance has thousands of tokens, our focus on USDT and USDC shows that a local product can beat a more diversified one in some markets” Goncalvez said.
A Global Financial Blueprint
Goncalvez believes Venezuela’s stablecoin usage is a lesson for other countries in crisis. “Venezuela’s cryptocurrency usage is not just a local phenomenon, it’s a global financial blueprint” he concluded.
This is in line with a recent Chainalysis report that says Venezuela is the market with the highest growth in cryptocurrency inflows, mostly driven by stablecoins.
The report highlights the importance of stablecoins to combat currency devaluation in unstable economies.
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