In Venezuela, the peer-to-peer (P2P) cryptocurrency buying and selling market shows a unique situation in the region: the value of stablecoins like USDT and USDC is much higher than the official exchange rate of the dollar from the Central Bank of Venezuela (BCV). What accounts for this significant difference?
The answer lies in the law of supply and demand.
The search for an alternative.
Due to strict restrictions on access to foreign currency through regular channels, banks, or licensed exchange houses, Venezuelans have found in stablecoins an essential tool. These cryptocurrencies, whose value is pegged to the US dollar (1:1), allow them to:
• Protect your savings from the constant devaluation of the bolívar.
• Conduct commercial transactions, from purchasing goods and services to paying suppliers.
Although banks allow opening accounts in dollars, in practice these are not used for everyday transactions, only for receiving remittances, although the percentage of users remains minimal. This creates a high demand for foreign currency that the official banking system cannot satisfy.
So, who defines the price?🤔
Many believe that platforms like Binance are responsible for setting the price, but this is incorrect. Binance, like other exchanges, only provides the space for users to make exchanges. In reality, it is the Venezuelans themselves, by interacting in this P2P market, who establish the value of crypto assets, creating a kind of 'decentralized exchange.'
It is evident that speculation exists in this market, but to a large extent, the high price is a direct consequence of the scarcity of official dollars. The dollar has become a high-end commodity for which people are willing to pay based on its value and utility.
Resolving this situation is complex and goes beyond a simple platform change. The solution requires clear rules, trust in the issuing entity (BCV), and, most importantly, a cultural transformation in how citizens and the government manage the economy.
Since commerce began, humans have speculated on everything, and this case is no exception. The Venezuelan P2P market is merely a reflection of an economic reality that seeks its own solutions in the face of traditional system limitations.
Amidst the diatribe, something very important goes unnoticed: THE COMMON VENEZUELAN is, out of necessity, discovering the universe of cryptocurrencies and their derivatives, which, looking towards future scenarios, places them at the forefront within the region. Venezuela ranked 13th in 2024 among 20 nations across five continents that have adopted cryptocurrencies as a medium and long-term financial alternative, surpassed only by its giant neighbor BRAZIL 🇧🇷. That deserves another post.
Of course, it is important to learn to manage the risks implicit in a market of extremely high volatility and constant renewal.
Thank you for getting this far.
Remember that I only provide an idea and that it is subject to error. I know this is a topic that stirs passions and that Venezuelans are passionate, but I just ask you to model your comments regarding it. Oh, lastly, this is not intended to be financial or monetary advice; your decision is personal.
Greetings of High Vibration.
