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El Dorado CEO sees stablecoins as key to Venezuela’s resilience

El Dorado CEO sees stablecoins as key to Venezuela’s resilience

GrafaGrafa2024/10/25 02:51
By:Liezl Gambe

Guillermo Goncalvez, founder and CEO of the Latin America-focused peer-to-peer (P2P) exchange El Dorado, emphasised the rising significance of stablecoins in Venezuela’s financial landscape. 

According to Goncalvez, the increasing shift towards the dollar due to the country's severe devaluation has made stablecoins a critical financial tool for Venezuelans, particularly for remittances. 

In a series of social media posts, Goncalvez described Venezuela as “the world’s stablecoin capital and premier use case,” citing the widespread adoption of these dollar-pegged tokens. 

He explained that Venezuelans increasingly depend on stablecoins to send money back home, especially as the country faces economic challenges and social uncertainty. 

He noted, “This trend has only intensified since the corrupt election this past July, making stablecoins crucial for those sending money home.” 

El Dorado’s heatmap reveals that most of these remittances come from neighboring countries like Colombia, Brazil, Peru, and Argentina, which host large Venezuelan migrant communities. 

El Dorado has emerged as a significant player in Venezuela’s crypto market, even rivaling major P2P exchanges like Binance. 

Goncalvez attributes this growth to the platform’s focus on simplifying the experience for Venezuelans by concentrating on just two key stablecoins, USDT (CRYPTO:USDT) and USDC (CRYPTO:USDC)

He believes this strategic focus has helped El Dorado become one of the top free financial apps in the national app stores. 

According to Goncalvez, “Venezuela’s embrace of cryptocurrency isn’t just a local phenomenon, it serves as a blueprint for global financial resilience.” 

His comments align with Chainalysis’ latest Geography of Cryptocurrency Report, which identified Venezuela as having experienced the highest percentage growth in cryptocurrency inflows. 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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