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 report issued by the United Nations. According to the United Nations, the report last month states that cryptocurrency has increased by 2,300% in the period September 2019-2021. The main driver of this increase was the Covid-19 pandemic.
Venezuela Among Countries With Most Crypto Adoption
According to a report by the United Nations Conference on Trade and Development, Venezuela is third in the world for cryptocurrency adoption. This ranking was only second behind Russia and Bulgaria. This report also examines the reasons for this growth as well as crypto regulation. It found that Venezuelan citizens held 10.3% of cryptocurrencies.
Russians came second, at 11.9%, and Ukraine, with 10.7%, was the first. The economic conditions these countries face and the volatility of their currencies due to conflict can explain this.
It also revealed that the report shows that countries in developing regions are more open to cryptocurrency. According to United Nations standards 15 of the top 20 nations with most cryptocurrency adoptions are classified as developing countries.
The Reasons For Growth
It also explores the causes of crypto’s rapid growth in these emerging countries. This document mentions that the Covid-19 Pandemic was an important factor in crypto’s adoption. It says:
Sending remittances was easy and affordable through cryptocurrencies. The already expensive traditional remittances services were even more costly during the pandemic.
This second factor is due to the fact that crypto was seen by citizens in these countries as an effective tool for securing their savings. These countries, such as Argentina and Venezuela which experienced high inflation rates, have been ranked highly in crypto adoption reports.
Governments in this area have responded to the expansion with regulatory measures. Venezuela has already established a clear legal framework for cryptocurrency, which allows bitcoin mining and other crypto-related activities to be legal. Russia and Ukraine have also begun to create clear rules regarding crypto.
How do you feel about Venezuela’s third-place ranking among countries that have the highest adoption of crypto? Comment below.
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