(Double up) Chainalysis Report Hints at Rising Crypto Usage in Venezuela, Trend May be Connected to Corrupt Practices

A recently released report from blockchain analytics firm Chainalysis has shown the rising momentum cryptocurrency usage is garnering in Venezuela. This current increase in crypto usage is reportedly Fueled by the country’s massive hyperinflation and the subsequent devaluation of the country’s fiat currency, the Bolivar. The report does not rule out the connection of the rising crypto usage trend to corrupt practices.

This cryptocurrency usage report suggests the increasing ease Venezuelans are finding in conducting transactions using digital currencies like bitcoin (BTC) as well the government-backed Petro (PTR) token. As Chainalysis reported, the growth in crypto usage was evident when the crypto trading volumes on the country’s approved cryptocurrency exchanges were analyzed.

From the report, one of such exchanges, Zulia State-owned Cryptolago, owned by Governor Omar Prieto, an ally of President Nicolas Maduro, received over $380,000 worth of Bitcoin from its addresses with over 3,916 transfers.

The exchange through its addresses also sent over $360,000 worth of BTC over 2,297 transfers. “One Venezuela expert we spoke to suggested that Criptolago’s transaction activity suggests the platform may be used primarily by individuals connected to the Maduro regime seeking to launder funds or move them out of Venezuela.” the report reads.

Nonetheless, Venezuela ranks as the third most active country on the LocalBitcoins exchange, the report reveals.

Maduro Favors Crypto to Avoid Sanctions

For a country with a rich oil reserve, the hyperinflation situation which has resulted in about 10,000,000% inflation rate is not the only nemesis they face. The country has had to battle several sanctions from countries like the United States, citing the government’s human rights violations as Chainalysis noted.

Besides the devalued Bolivar, Chainalysis believed that the Maduro led government developed and launched the Petro (PTR) coin as a viable means to avoid sanctions from the US and OFAC-member countries.

Reports have also emerged that the Venezuelan government had been utilizing cryptocurrencies to conceal drug ring transactions to the United States, a situation that has spurred the US Department of Homeland Security to place the Petro (PTR) development chief Joselit Ramirez on its most wanted people’s list.