Stablecoin for sending money to Venezuela
Goncalves said Venezuela is the “stablecoin capital of the world” as millions of Venezuelan expatriates use these digital assets to send money back to their home country.
With 8 million Venezuelans living abroad due to the economic and political crisis, stablecoins have become a way to send money across borders.
Traditional bank and fiat money transfers are considered unreliable, so stablecoins are the preferred option when sending money from countries such as Colombia, Brazil, Peru, and Argentina.
This trend has accelerated in recent months, especially after the contentious July election. During political unrest, many people use stablecoins as a safe haven.
Eldorado’s heatmap shows a large amount of stablecoin remittances flowing into Venezuela from neighboring countries with large Venezuelan communities.
Eldorado’s emphasis on stablecoins is the secret to success
Eldorado’s strategy of focusing only on stablecoins like USDT and USDC has made the platform successful, outperforming Binance in the Venezuelan market.
El Dorado meets local demand by simplifying its offering and provides an easy-to-use platform without having to list thousands of tokens. Goncalves said this focus on stablecoins has made El Dorado one of the top financial apps in Venezuela.
“While Binance holds thousands of tokens, our focus on USDT and USDC means that in some markets local products may outperform more diversified products. “We are showing that,” Goncalves said.
A global financial blueprint
Goncalves believes Venezuela’s use of stablecoins holds lessons for other countries in crisis. “Venezuela’s use of cryptocurrencies is not just a local phenomenon, but a global financial blueprint,” he concluded.
This is in line with a recent Chainalysis report that found Venezuela to be the market with the highest increase in crypto inflows, primarily driven by stablecoins.
The report highlights the importance of stablecoins to counter currency devaluation in unstable economies.
