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Venezuela, one of the first countries in Latam to be considered “crypto-friendly” by some standards, has ranked third in adoption rates, according to a UN report. The report, published last month, states that the cryptocurrency ecosystem has grown by 2300% between September 2019 and June 2021, and that the Covid-19 pandemic was one of the main catalysts for this growth.
A report issued by the UN Conference on Trade and Development has found that Venezuela ranks third among the countries with the most cryptocurrency adoptions, just behind Russia and Bulgaria. The report, which also addresses the reasons for this growth and cryptocurrency regulation, found that 10.3% of Venezuelans had cryptocurrencies.
Russians were number two on the list, with 11.9% of the population holding crypto, while Ukraine ranked first, with 10.7% of the population holding some form of crypto. This can be explained by the economic situation these countries are facing and the fluctuations in their currencies due to conflict.
The report also shows that developing countries have been more receptive to the cryptocurrency proposal. Of the first 20 countries with the most adoptions, 15 are qualified as developing countries under UN standards.
The study also tries to explain the reasons why crypto has grown so much in these developing countries. The document notes that the Covid-19 pandemic played an important role in the adoption of crypto. It says:
The use of cryptocurrencies was an attractive channel, in terms of price and speed, for sending money transfers. During the pandemic, the already high costs of traditional money transfer services increased even higher during lock-in periods due to related disruptions.
The second reason that drove this growth has to do with the view that the citizens of these countries have about crypto as a useful tool to secure their savings. This is why countries such as Argentina and Venezuela, which have experienced tough periods of inflation, are ranked highly in reports on the use of cryptocurrency.
This expansion has also fueled a regulatory response from the authorities in the area. Venezuela already has a fairly clear legal framework for cryptocurrency, which establishes bitcoin and crypto mining as legal activities. Russia and Ukraine are also in the process of establishing clear rules for the use of crypto.
What do you think about Venezuela ranking third among the countries with the most crypto adoption? Tell us in the comments section below.
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