XRP use in Venezuela could explode in the next decade
Venezuela, a vast country located in the north of South America is full of natural resources and benefits from a strategic location. Home to over 28 million people, this diverse and colorful nation has every reason to be prosperous and successful. However, the picture is quite the opposite now, as Venezuela struggles to recover from an ongoing economic crisis that has caused unprecedented hyperinflation, exceeding 10 million percent. The Venezuelan Sovereign currency, despite the replacement of the old one and a number of financial speculations, remains one of the least valuable on earth. So what has caused the crisis in this marvelous nation and how are Venezuelans coping with the hit?
The story of Venezuela is quite a sad one. The national government that has been in charge for over two decades now has managed to simply waste the largest oil reserve in the world. For comparison, with effective management of the resources the country holds, Venezuela could have become the richest nation on the continent throughout the past two decades. However, instead of utilizing its economic potential and the immense reserves of natural resources, Venezuela’s socialist government failed to foster growth. With that, the government threw the nation into the worst economic crisis seen in decades, exceeding the aftermath of major military conflicts.
The worst-hit part of the country’s rigid economic system is Venezuela’s national currency.
One of the steps taken by the government was to replace the currency with the new Venezuelan bolívar. The substitute to bolívar Fuerte did not change much, nor it managed to slow down the hyperinflation. The international organizations and governments around the world have advised implementing shock therapy measures in an attempt to cope with the situation. However, those left without stable incomes in a strong currency can not wait for the measures to work. That is why those have found a way to use financial services without being subject to the government’s sudden decisions.
The crypto era in Venezuela
The national currency is no longer able to support the needs of more than 18 million citizens of Venezuela. Therefore, amidst the growing economic downfall, many have found a smart solution. The crypto market has been soaring throughout the past decade, becoming one of the most discussed financial niches of all time. The international media attention and unprecedented public interest have resulted in the widespread use of cryptocurrencies all around the world.
Venezuela is no longer an exception as XPR and Dash have become rather commonly used currencies, substituting Venezuelan bolívar. Ripple serves as the base for economic ecosystems within Venezuela, running independently, free of the Bolivar influences. For thousands of people, switching to XPR has been salvation, no longer being afraid of the constantly devaluing currency that is everything but stable. Those who work jobs online or are employed by progressive firms get paid in cryptocurrencies whilst promoting themselves as more trustworthy than businesses that pay in Bolivar.
But where does the crypto come from in Venezuela? And is it legal to use them within the country? First off, it is important to note that the vast majority of user data within Venezuela comes from Canada, particularly from online gambling platforms based there. Representatives of the leading platform PlayAmo Canada say that the traffic from Venezuela has been increasing significantly over the past few years. Casinos and other services based overseas is a way for Venezuelans to exchange currencies without the state authorities suspecting anything. After heavy sanctions imposed by the United States, Venezuela has been left to find alternatives. Canada comes across most attractive amidst the lack of developed nations around Venezuela. Fortunately, Canadian services are rather welcoming and Venezuelans have easy and smooth access to them.
The fact is that XPR and its further sophistication in comparison to Dash can serve as a major benefit for Venezuela. The economic difficulties have not ended as the hyperinflation, along with skyrocketing prices and the increase in poverty remain burning issues for the locals. Millions of educated and highly-skilled workers have already fled the country for nations like the United States, Canada, the United Kingdom, and even Argentina or Brazil. Boosting the devastated economy without young talent and working governmental structures will be incredibly difficult for Venezuela. This is why there is not much hope for Bolivar to recover in the nearest future. Facing difficult circumstances, Venezuelans who have access to crypto find relief in XPR.
The situation in Venezuela is undoubtedly the worst not only in the region but also globally. However, neighboring countries also face economic challenges caused by corruption, the lack of resources, political turmoil, or burning injustices. Therefore, as XPR becomes more and more successful within Venezuela, we might see the trend extending into other nations within the region over the next decade.