Stablecoin usage in Venezuela likely to keep expanding amid economic instability

The crypto ecosystem in Venezuela is a product of ongoing economic collapse and international sanctions pressure, according to the TRM Labs team.

Venezuelans are already heavily reliant on blockchain technology for banking after suffering through a decade of economic pressures; however, usage is likely to keep growing if conditions worsen in the South American country, blockchain intelligence firm TRM Labs says.

As regional and geopolitical tensions continue to rise, driven in part by US-Venezuela tensions, causing macroeconomic instability and the bolívar’s continued devaluation,
the TRM Labs team predicted in a report on Thursday that demand for stablecoins as both a store of value and a medium of exchange will rise.

At the same time, regulatory ambiguity and continued uncertainty surrounding the country’s crypto regulator, SUNACRIP’s, authority and enforcement capacity, and eroding trust in traditional banking infrastructure could prolong the population’s dependence and drive more usage. 

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