After imposing new tax regulations on incoming remittances, the Venezuelan government launched its own remittance platform. However, the only supported currencies, besides the Venezuelan Bolivar (VES), are Bitcoin and Litecoin.
Migrant workers abroad can send their loved ones cryptocurrency and the platform will deposit Venezuelan Bolivares in the recipient’s bank account. The service is part of the Patria, Spanish for Motherland, platform. It charges a 6.9% commission.
In January 2019, the government of Venezuela announced new legislations to regulate crypto related activities. The Superintendence of Cryptoassets and Related Activities of Venezuela (SUNACRIP) is the regulatory body that oversees the crypto space in the country.
According to Coin Dance, almost 2,000 Bitcoins are traded in Venezuela every week. The figures come from the peer to peer Bitcoin trading platform LocalBitcoins. Many consider that the country’s rampant inflation and currency exchange regulations are the factors behind cryptocurrency adoption in the country.
Will Venezuelans turn to the state backed remittance platform or continue to use other crypto trading websites?