Usage of Bitcoin for Remittances by Venezuelan Migrants

Usage of Bitcoin for Remittances by Venezuelan Migrants

Having cloths and a mobile wallet with 1.5 BTC in savings, Deimer Gonzalez, former employee of PDVSA, started building a new life in Buenos Aires, Argentina leaving Venezuela. He could support his family because of the saving. Venezuela earned $3.7 billion as remittance in 2019. The above mentioned person thinks bitcoin is playing a great role in facilitating international transactions.

For accessing financial services and relocation process migrants are using crypto in those countries. Another trader, Wolfang Barrios having no bank account, arrived in Chile without savings in the local currency. Backing up a family in Venezuela is not that much easy because the costing is really high.

He now sends $50 worth of bitcoin which is not enough to support his family. So both his parents need to work to bear the cost indeed.

Remittance as a Business

There may be a prosperous future waiting for crypto-remittance business. Jesus, an entrepreneur, works for Peru-Venezuela remittance platform Local Remesas. With the platform they have $200,000 and $300,000 a month. Niche fiat-to-crypto payment processing is a profitable business in Venezuela. Peru is the second choice for Venezuelan immigrants. On the other hand, the government of Nicolas Maduro just launched its own remittance platform using blockchain-based-Petro (PTR).

Safety and Fraud

Bitcoin became popular in Venezuela because of regular inflation rate of 3 percent and detraction of the bolivar. A crypto advocate namely Mariluna De La Concha has been sending remittances in crypto to her family from 2016 to 2019.  Because of inflation, exchanging crypto has a good value but it is costly. Those costly exchange platforms have been chosen by her only because of safety issue indeed. But some issues of fraud are anonymous which were reported. A piece of information came to light that transactions of platforms of exchange are on charge by police to extort users of bitcoin.

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