Crypto Remittances Rise Amidst Venezuela's Bad Economic Situation!

Venezuela is well known in the world as one of the world's oil reserves. Although the country has abundant oil reserves, the country's economic situation has been deteriorating in recent times. But one of the good news is that crypto remittances from family members living abroad are increasing day by day in recent times. About 9 percent of the country's remittances last year were in cryptocurrencies. The country's remittances have been increasing in the past few years.

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The country's expatriates generally send remittances using services such as Western Union. However, when the citizens of the country send this money home, they consider various factors such as relatively steep fees, transaction time. The reason nationals use such Western Union services is because currency supply issues can often make these services, as strong as they are, impractical for individuals in the developing world. The country's economy continues to be plagued by inflation, embargo restrictions, supply problems and government corruption. Rising inflation and government corruption have created an economic nightmare for Venezuela, especially with US sanctions on the country.

Around 2018 the country's government declared a state with digital currency where they ignored the US ban. The Venezuelan government created a state-backed cryptocurrency called the "Petro" at the time. But there is also a problem for the country to deal with because of the alleged corruption in the country. Moreover, another problem was due to the lack of status of crypto as legal tender within the country. Due to which the measures taken by the country's government at that time also resulted in the failure of widespread adoption of cryptocurrency.

The Central Bank of Venezuela also objected to the actions taken due to the country's corruption or ignoring the US sanctions. Even the country's central bank refused to accept the petro. However, the move with them was pending for a long time but it finally came to a close this year. But the bold move hasn't stopped the Venezuelan government from turning to digital assets to bypass US sanctions. The country's government took several steps to boost the economy, including using cryptocurrency to facilitate international oil trade. And in response to their actions, stablecoin issuer Tether has announced that it will freeze USDT ( USDT ) assets held by Venezuela in compliance with US sanctions.

Most of the remittances coming into the country are stablecoins and store-of-value assets. Although the country still imposed restrictions on crypto in the present, the country's officials in particular announced a ban on crypto mining. Because we know Bitcoin mining requires a lot of electricity. Mining cryptocurrencies puts a heavy burden on the country's power grid. The country shut down mining facilities due to an ongoing corruption investigation into Venezuela's oil industry and the head of its crypto ministry, Joselit Ramirez Camacho.