From bitcoin to bolivares: the reality of Venezuelan remittances using cryptography
Since the massive dispersion of Venezuelans throughout the world, as a result of the current crisis in Venezuela, the sending of remittances has become one of the main sources of income for families still residing in the country. Countries such as Mexico, the United States and Spain have provided support and are among the Venezuelans' options when it comes to migrating. But there is no doubt that the largest concentration of the population is found in Latin America.
It is estimated that 29% of Venezuelans abroad constantly send money to their families. That's about 2.2 million Venezuelans. One of the most popular services is the so-called "remittance service. Most of them are other Venezuelans who offer the service of exchanging the country's currency for bolivars. In exchange, of course, a commission that can be up to 20% of the total. However, this has not diminished the sending of remittances to the country, which could reach 3.7 billion dollars by 2019.
And although this service is popular. Every time people choose to exchange directly through bitcoin and other crypto currencies. The exchange with cryptomedas has played an important role in sending remittances. Taking into account the position of the emigrant who when arriving in a new country does not have immediate access to financial services. The quality of these crypto currencies has been attractive to facilitate cross-border operations in a few minutes.
Exchange process with many options
Crypto-remittance companies can mean a lucrative business in Venezuela. A worker at the Peru-Venezuela remittance platform, Local Remittances indicates that they receive between $200,000 and $300,000 per month. He explained that the platform currently exchanges the money received for bitcoin, which is then exchanged for bolivars in Venezuela.
The National Superintendent of Cryptoactives, Joselit Ramírez, reported that the Patria Remesa platform in Cryptoactives is operational and allows money to be sent from abroad to the country through the Patria System. Although in this case the commissions are very high and the confidence in the system is very low.
On the other hand, there are users who choose to send their remittances directly to personal purses or wallets. Venezuelan families can receive the money in crypto currencies and exchange it when they consider it necessary. Thus, they have the option of protecting their funds from the hyperinflation that is experienced every day.
The trap in this whole process
However, for many users, using these platforms is the last resort. Inflation per day of 3% and the continued devaluation of the Venezuelan currency make bitcoin exchange very useful for those living in Venezuela. But in other parts of Latin America, some people prefer to use fiat money. For them, it means a saving compared to using crypto currencies.
On the other hand, the use of these exchange platforms in crypto coins also provides security. Cases have been reported where Venezuelan bank accounts abroad have been blocked after an operation. Reports that have been made anonymously due to fear of being apprehended.
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