They tried to fight inflation this year by using cryptocurrencies on an unprecedented level in Venezuela. This is the first time this has happened in the country.
For Venezuela, 2021 has been a year of big changes at the microeconomic level. Even more than in 2020, the effects of powerful catalysts for change like COVID-19 were clear to see.
Bitcoin and other virtual currencies were very important to the South American country during this year.
In this review, we’ll look at what the Venezuelan crypto ecosystem will look like in 2021. This includes things like trading, play-to-win (P2E) games, fintech, mining, regulation, and nonfungible tokens, which aren’t real money (NFTs).
People are more willing to use cryptocurrencies.
A company called Chainalysis says Venezuela is seventh in the Global Cryptocurrency Adoption Index 2021 because of a lot of peer-to-peer (P2P) trading in Venezuela.
In 2021, a big trend was that more and more people and businesses in Venezuela were accepting cryptocurrencies as a form of payment to avoid hyperinflation and the devaluation of the national currency, the bolivar. This has been going on for a while in the South American country.
Cryptocurrencies are becoming more common in some of the country’s most important cities, like the capital Caracas and the city of Puerto La Cruz.
Crypto payment platforms like Binance Pay, Reserve, and Vali have made it easier for people to use cryptocurrencies without having to know a lot about them. This has led to a more digital economy based on cryptocurrencies.
In Venezuela, some big businesses are accepting cryptocurrencies, like the Simón Bolvar International Airport, the Bio Mercados supermarket chain and even the country’s largest cable TV provider. Besides Church’s Chicken, which is a fast food chain, Dash also began to pay bonuses to its employees (DASH).
Those who support legal mining
According to a report from the University of Cambridge, Venezuela was one of the top 10 countries that were mining cryptocurrency at the start of 2021. This makes it the first country in Latin America to make it into the top 10 list.
Since 2018, the country has had the lowest electricity prices in Latin America. This led to the country being ranked high in mining. This makes the Caribbean country a good place to mine Bitcoin (BTC) and set up a regulatory framework that protects and guarantees the legal development of the business.
A group called the National Superintendence of Cryptoassets (SUNACRIP) has called on miners to work legally, even though there have been some cases of mining equipment being taken, arbitrary disconnections, and arrests of illegal miners. It is still looking for ways to make sure that the law will stay the same.
Mid-September, the government sent out an official statement that told law enforcement not to do anything that would stop cryptocurrency mining. This includes inspections, seizures, or anything else that would stop the mining process.
In mid-November, Venezuela held its fifth official mining meeting. SUNACRIP met with more than 150 miners from the region, companies linked to the digital mining sector, crypto personalities from the Venezuelan ecosystem, and exchanges like Binance, among other things.
Craze: Play games to earn money
For the last four months of 2021, 10 of the 50 most popular web pages in Venezuela were about cryptocurrencies, and a lot of them were about popular NFT games like Axie Infinity and Plants vs. Undead, which use cryptocurrencies.
Play-to-win and NFT games caused a stir in Venezuela, where both experienced crypto users and newcomers to the asset class were shocked by how much they could earn. The games have led to a rise in the use of crypto, mostly because players can earn dividends.
Because of the low wages in Venezuela, this has been a kind of economic help. People in Venezuela are also active on Axie Infinity, which makes them the second most active country in the game.
So many businesses started to accept Axie Infinity’s Smooth Love Potion (SLP) token because the game was so well-liked. Binance has made it possible for people to trade SLP with each other. Even a candidate for governor of the ruling party in recent regional elections said he would give Axie Infinity scholarships if he won.
There is a lot of interest in crypto and blockchain in the classroom.
In Venezuela, the Universidad Catolica Andres Bello added blockchain, cryptocurrencies, and fintech to the curriculum of its business administration and public accounting programmes. This means that education is very important for people in Venezuela to use these technologies.
The Universidad Nacional Experimental de las Telecomunicaciones e Informática started teaching a master’s degree in blockchain. In 2022, the Universidad de los Llanos plans to start teaching a bachelor’s degree in blockchain engineering and cryptocurrencies, as well.
A blockchain expert has been hired.
An official who works for the government named Roman Maniglia, who says he’s an expert in cryptocurrency and new technology, as the head of the country’s largest bank, Banco de Venezuela.
The appointment of an official who says on Twitter that he is an expert in finance, cryptocurrencies, fintech, and blockchain shows that Venezuela is interested in combining traditional financial systems with new technologies like blockchain.
Venezuelan NFT art should be shown more
In 2021, there was a lot of growth in both the cryptocurrency markets and the number of NFTs around the world. Venezuela was no different.
NFTs were used in a lot of popular video games, as well as in art and music. They also saw a lot of use in entertainment.
Launched: SUNACRIP made an NFT in honour of the country’s independence and 200 years since the Battle of Carabobo. Ron Caripano de Venezuela, the long-time leader in the country’s liquor industry, started selling its own NFTs on OpenSea’s decentralised market for charity. In addition, a group of Venezuelan artists called La Tokena turned their artwork into NFTs and put them on display at special shows.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.