The Venezuelan government headed by Nicholas Maduro has launched a cryptocurrency remittance service that will be accepting only Bitcoin [BTC] and Litecoin [LTC].
Controlled by the official Venezuelan cryptocurrency regulator Superintendency of Cryptoassets and Related Activities (Sunacrip), the service – named “Remesas” will be based on the similarly government-run Patria platform. A description on the Remesas website says that,
“[It] is a service of the Patria Platform that allows you to send remittances to Venezuela in Cryptocurrencies. The resources sent will be available in Sovereign Bolivars in the Monedero Patria as soon as the transfer is confirmed. The cryptocurrencies that can be used to send [remittances] are Bitcoin and Litecoin.”
The service operates under several restrictions including capping monthly transaction limits. Currently, that rate stands at 10 Petros per month. The Petro is the Maduro-backed cryptocurrency launched last year by Nicholas backed 1:1 against the value of a barrel of oil in Venezuela. The exchange rates for the two cryptocurrencies supported by the service as against the Euro will be controlled by the Central Bank of Venezuela (BCV). Transactions fees or commissions on the service vary between 25 euros and 15% of the value being transacted depended upon the volatility of the space.
Remesas as a platform is designed to enable Venezuelans living abroad to settle their remittances with citizens living within the country with the aim of centralizing the remittance market. So far, owing to the runaway inflationary conditions in the country, several Venezuelans have sought to bank in cryptocurrency with Bitcoin being the leading gateway crypto in the country.
Statistics from blockchain analytics service CoinDance on the volumes recorded on peer-to-peer Bitcoin exchange service LocalBitcoins.com shows that more than $63 million worth of Bitcoin transactions have been processed by Venezuelans in this year alone.