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You'd think that Venezuela would have provided incredibly fertile ground for bitcoin usage to go mainstream. But what actually happened is good old fashioned d

You'd think that Venezuela would have provided incredibly fertile ground for bitcoin usage to go mainstream. But what actually happened is good old fashioned dollarization. U.S. dollar banknotes flooded into the country. As for digital payments, Venezuelans have repurposed Zelle, the U.S-based person-to-person payments option, to make digital U.S. dollar payments.

nickez 6y ago
I was under the impression that bitcoin trading volume has been increasing steadily in Venezuela. https://coin.dance/volume/localbitcoins/VES https://coin.dance/volume/localbitcoins/VES
- jpkoning 6y ago
  Yes, it is. My understanding is that some people use bitcoin as a bridge for remitting funds into Venezuela. But this is a niche usage. What locals really want are dollars. Something like 50-60% of all Venezuelan transactions are now being conducted with U.S. paper money and Zelle.
  - kemonocode 6y ago
    It's true, most transactions that involve USD are done with paper money in Venezuela (which is why I mentioned I used BTC when it wasn't physically feasible to transact because coming by such paper money is not straightforward) but when it comes to electronic solutions it's a constant cat-and-mouse game. You mention Zelle which was up until very recently [0] the most used option, but people are now seeking alternatives- cryptocurrency just being one of them- and I ought to clarify that not everybody has a trusty acquaintance/family member with an US-based bank account (or a bank account themselves) to use these solutions. [0] https://www.archyde.com/wells-fargo-eliminates-access-to-zelle-to-customers-with-an-account-address-in-venezuela/ https://www.archyde.com/wells-fargo-eliminates-access-to-zel...
- waynenilsen 6y ago
  It is important to look at the axis and see there is no major growth right now it is floating around at 500 BTC per week which is about 4 million usd or approximately zero. This transaction volume is a rounding error for a country of that size

nickez 6y ago

I was under the impression that bitcoin trading volume has been increasing steadily in Venezuela. https://coin.dance/volume/localbitcoins/VES https://coin.dance/volume/localbitcoins/VES

jpkoning 6y ago
Yes, it is. My understanding is that some people use bitcoin as a bridge for remitting funds into Venezuela. But this is a niche usage. What locals really want are dollars. Something like 50-60% of all Venezuelan transactions are now being conducted with U.S. paper money and Zelle.
- kemonocode 6y ago
  It's true, most transactions that involve USD are done with paper money in Venezuela (which is why I mentioned I used BTC when it wasn't physically feasible to transact because coming by such paper money is not straightforward) but when it comes to electronic solutions it's a constant cat-and-mouse game. You mention Zelle which was up until very recently [0] the most used option, but people are now seeking alternatives- cryptocurrency just being one of them- and I ought to clarify that not everybody has a trusty acquaintance/family member with an US-based bank account (or a bank account themselves) to use these solutions. [0] https://www.archyde.com/wells-fargo-eliminates-access-to-zelle-to-customers-with-an-account-address-in-venezuela/ https://www.archyde.com/wells-fargo-eliminates-access-to-zel...
waynenilsen 6y ago
It is important to look at the axis and see there is no major growth right now it is floating around at 500 BTC per week which is about 4 million usd or approximately zero. This transaction volume is a rounding error for a country of that size