For Venezuela, 2021 was a year of great change at the microeconomic level, with the results of powerful catalysts for change, such as COVID-19, clearly visible.

In a more dynamic economy with more foreign exchange transactions, cryptocurrencies played a major role this year for the South American country.

In this overview, we will look at the most prominent features of the Venezuelan crypto ecosystem in 2021, including related areas such as commerce, profitable gaming (P2E), financial technology, mining, regulation, and non-fungible tokens (NFTs).

Some accept cryptocurrency
Venezuela ranks seventh in the 2021 Global Crypto Adoption Index, driven primarily by peer-to-peer (P2P) trading activity, according to blockchain analysis firm Chainalysis.

A notable trend in 2021 was the rise in the number of people and companies in Venezuela accepting cryptocurrency as a form of payment in order to circumvent hyperinflation and devaluation of the national currency, the bolivar, a trend that has plagued the south. The American nation in recent years.

In some capitals of the country, such as the capital Caracas and Puerto La Cruz, it is becoming more and more common for people or merchants to use cryptocurrencies as a means of payment.

The emergence and use of cryptocurrency payment platforms such as Binance Pay, Reserve, or even Valiú has accelerated the adoption of a digital economy based on cryptocurrencies without the need for users to have extensive knowledge of the subject matter.

Notable companies that accept cryptocurrency in Venezuela include Simón Bolívar International Airport, Bio Mercados supermarket chain, several casinos, and even the largest cable TV operator in the country. Fast food chain Church’s Chicken has begun paying its employees DASH bonuses.

Legal Mining Support
In early 2021, Venezuela entered the top 10 cryptocurrency mining countries, making it the first Latin American country to enter the top ten, according to a report from the University of Cambridge.

The country’s high mining ranking is largely due to the fact that the country has had the lowest electricity prices in Latin America since 2018. This makes the Caribbean country attractive for Bitcoin (BTC) mining and establishes a regulatory framework that protects and legally guarantees mining development. industry.

Despite some cases of mining hardware confiscations, arbitrary shutdowns, and arrests of illegal miners, the National Crypto Asset Authority (SUNACRIP) has urged miners to operate legally. In addition, he looks for mechanisms that provide guarantees of legal stability.

In mid-September, an official statement from the authorities instructed law enforcement agencies to refrain from conducting searches or carrying out operations related to supervision, arrest, or any other type of boycott of cryptocurrency mining.

In mid-November, the country’s fifth official mining meeting was held, and SUNACRIP met with more than 150 miners from the region, companies associated with the digital mining sector, cryptocurrencies from the Venezuelan ecosystem, and exchanges such as Binance.

Obsession to make money
In the last four months of 2021, 10 of the top 50 visited sites in Venezuela were related to cryptocurrency, including a large number linked to popular NFT games such as Axie Infinity and Plants vs Undead.

Profitable games and NFT games have attracted attention in Venezuela among experienced crypto users and those new to the asset class. Games contributed to the adoption of cryptocurrencies, mainly due to the ability of gamers to earn profits.

For many Venezuelan families, this has proven to be a form of economic salvation due to low wages. In fact, Venezuela has the second largest number of active Axie Infinity users after the Philippines.

The game was so popular that several companies started accepting Axie Infinity’s Smooth Love Potion (SLP) token. Binance has enabled the SLP P2P exchange on the app, and even the ruling party’s candidate for governor in the recent regional elections has promised to offer an Axie Infinity Scholarship if they win.

Academic interest in cryptography and blockchain
Education is central to admission to Venezuela, as Andrés Bello Catholic University of Venezuela has integrated blockchain, cryptocurrency, and financial technology into the curricula of business schools and public accounting programs.

The National Experimental University of Communications and Informatics has offered a master’s degree in blockchain, and Los Llanos University has revealed plans to offer a lower degree focused on blockchain technology and cryptocurrency in 2022.

Source: CoinTelegraph

LEAVE A REPLY