Record at the end of August
Data collected on the Coin Dance website indicate the transaction volume in individual countries of the world, including the currencies used in them. Last week, according to these data, is the all-time record for transactions in Venezuela.
source: Coin Dance
During the accounting period for the last week of August, transactions totaling 114 billion bolivars (about $ 5 million) were carried out. They were made only thanks to the LocalBitcoins platform, and therefore the transaction could be definitely more.
Inflation progresses
The increase in transactions using cryptocurrencies is undoubtedly the result of increasing inflation in Venezuela. With each passing day, the Venezuelan Bolivar is depreciating against other fiduciary currencies in the world. It is true that in July the government introduced numerous financial controls that caused inflation to slow down somewhat, its percentage is still several hundred thousand.
The government consistently believes in the strength of its currency, as does the national stablecoin - Petro. Even a few weeks ago, President Nicolas Maduro instructed all Venezuelan banks to accept Petro as a payment method. However, legal doubts are still high, hence the relatively small interest in stabelcoin.
Why the popularity of cryptocurrencies?
The uncertain financial situation in some countries is conducive to the development of the cryptocurrency industry. Recent geopolitical events in the world undoubtedly have an impact on the value of Bitcoin and other altcoins.
The US trade war with China, the upcoming Brexit, or anti-government protests in Hong Kong - all these events contribute to raising awareness about cryptocurrencies in the world. People are more eager to search for information and invest in virtual currencies.