The COVID-19 pandemic has helped accelerate the Bitcoin adoption process, says Farías. More than 2,000 businesses are accepting cryptocurrency payments, and the number continues to grow.
Amid the COVID-19 pandemic, there has been a considerable boost to the use of Bitcoin (BTC) and other cryptocurrencies as a means of payment in Venezuela. Much of that increase in the adoption of Bitcoin in the South American country has occurred thanks to Cryptobuyer, which provides a payment gateway that Venezuelan businesses use.
Chains of supermarkets, fast food restaurants, and even hotels have adopted cryptocurrency payments with this platform as a mediator in just the last few months. Besides, a Visa debit card rechargeable with Bitcoin has emerged so that Venezuelans can use cryptocurrencies in their daily lives.
Jorge Farías, CEO of Cryptobuyer, provided some details that allow a broader vision of the growth landscape that the cryptocurrency payments ecosystem has experienced in the country.
The executive spoke about the increase in the number of options with Bitcoin and other cryptocurrencies in Venezuela, as well as the dominance of the pioneer cryptocurrency compared to other cryptocurrencies.
Bitcoin and Other Cryptocurrencies Amid the COVID-19 Pandemic
Although cryptocurrencies had already gained ground among Venezuelans, the COVID-19 pandemic set the tone for the exponential growth of options, according to the Cryptobuyer representative.
“The issue of the pandemic has made an alternative payment system, including contactless and remote payment solutions, more necessary than ever,” said Farías.
Farías himself said that the Bitcoin adoption process could have taken at least 4 years. However, believes that the pandemic possibly reduced that period by half.
In recent weeks, the Rattan supermarket chain began accepting payments in cryptocurrencies at its branch on Margarita Island, one of the preferred tourist destinations in Venezuela. The also supermarket chain, Excelsior Gama, and the Pizza Hut franchise had done the same before.
Payments in Bitcoin and Cryptocurrencies in Venezuela
Currently, there are more than 2,000 Venezuelan businesses affiliated with the Cryptobuyer platform. Also, there are another 10,000 that are “in process with various integration and payment processing companies.” Farías highlights that the most prominent of the latter is Mega Soft, the main provider of points of sale in the country, with more than 30,000.
The also founder of the Cryptobuyer payment gateway believes that the partnership with Mega Soft has helped them “penetrate large stores and chains”, where they had no direct presence before.
In early November, Antonio Castro, the director of Mega Soft, said that around 500 points of sale had already implemented payments with cryptocurrencies through the integration between this company and Cryptobuyer.
The executive states that legislation on the activity with Bitcoin and other cryptocurrencies in Venezuela is quite clear compared with those of other countries in the world and particularly in the region.
Venezuela among Countries with the Highest Adoption of Bitcoin
Cryptobuyer has played a leading role in the growth in the use of Bitcoin in everyday purchases and payments. However, the truth is that cryptocurrencies, in general, have gained a lot of ground in Venezuela.
According to Chainalysis, the South American country is the third in the world regarding the adoption rate. Researchers reported that fact in a study last September.
Vladislav Alimpiev, from the LocalBitcoins P2P exchange platform, confirmed the weight of Venezuela among its main markets, as it ranks second on the planet.
He notes that Venezuela currently has a critical economic situation, marked by hyperinflation and the constant devaluation of the bolivar (VES), its legal tender. Likewise, he highlights that these are two of the reasons that have led to the high interest of Venezuelans in Bitcoin.
Faced with this situation, Venezuelans look for adequate mechanisms that allow them to safeguard the value of their savings or income. They have thus found in Bitcoin a useful mechanism for their needs.
By Willmen Blanco
