Dogecoin Emerges as a Remittance Cryptocurrency of Choice in Venezuela

Dogecoin has been steadily moving away from the “just a memecoin” brand as its real-world use cases continue to expand.

Dogecoin price today showed little movement as the memecoin traded flat. However, fresh data has shown that the memecoin is being used for a critical purpose in Venezuela.

According to R4V, an inter-agency assisting refugees from Venezuela, the country received $5.4 billion in remittances last year. Out of this amount, over $461 million, or around 9%, was in cryptocurrency.

A graph from Bloomberg showed that crypto has become increasingly important in Venezuelan remittances. In 2020, crypto contributed just under $200 million to the total amount of remittances received by the country. By 2023, this number had more than doubled, reaching the current level of $461 million.

Venezuelans are increasingly turning to cryptocurrency for remittances due to the high cost and limited access to traditional money transfer services. Crypto provides a faster, cheaper, and more accessible alternative to sending money back home.

Dogecoin emerged as one of the cryptocurrencies of choice for many Venezuelans. According to one Venezuelan immigrant who spoke to Bloomberg, DOGE has “the lowest transfer fees she could find, as compared to other cryptocurrencies or stablecoins which have higher fees in US platforms.”

The Dogecoin team highlighted the memecoin’s rising importance in Venezuela on social media, stating:

“Many crypto projects chase gains, but Dogecoin’s purpose is to be a simple means of exchange for everyday people. Shibes around the world are putting Doge to real use.”

While crypto has made the remittance process easier for millions, it has its own set of risks. For instance, most cryptos, including Dogecoin, tend to be volatile. As reported by Crypto News Flash, some tokens, like Celestia (TIA), gained 16% in the past day, while others, like Pepe, bounced back 12%.

However, while today most tokens gained, sometimes they lose value, making them unsuitable for long-term holding. Stablecoins have reduced the impact, with Tether being especially popular in Venezuela.

As for the memecoin, Dogecoin traded sideways on Thursday and changed hands at $0.1072 at press time. Its trading volume dipped 35%, mirroring the broader market, whose overall volume dropped to $72 billion after hitting $98 billion on Monday.

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