El Dorado CEO: Venezuela Highlights Stablecoins' Use Case as a 'Tool for Resilience'
Guillermo Goncalvez, founder and CEO of El Dorado, a Latam-focused P2P exchange, has reflected on the rise of stablecoins from a niche product to a widely used tool in Venezuela. Goncalvez states that, as Venezuelans shift to using the dollar due to devaluation, stablecoin remittances have soared, demonstrating that these are a viable alternative when traditional systems falter.
El Dorado CEO Profiles Stablecoins as Financial Resilience Enablers in Venezuela
The embrace of stablecoins by Latin American countries, especially Venezuela, is starting to be studied as a use case for these dollar-pegged tokens. Guillermo Goncalvez, founder and CEO of El Dorado, one of the leading peer-to-peer (P2P) exchanges in Latam, has reflected on the value of these tools in a state of social and economic uncertainty.
In recent social media posts, Goncalvez stressed that Venezuela represented “the world’s stablecoin capital and premier use case,” highlighting the massive use and adoption of these tools. According to his insight, Venezuelans have relied heavily on stablecoins for remittances, as it is estimated that over 8 million have been displaced from the country due to the convoluted economic situation.
“This trend has only intensified since the corrupt election this past July, making stablecoins crucial for those sending money home,” he stated. According to El Dorado’s heatmap, these remittances come mostly from Colombia, Brazil, Peru, and Argentina, countries known to have received a large Venezuelan migrant population.
El Dorado has grown to rival other large P2P exchanges like Binance, surpassing it to become one of the top free apps in national app stores. Goncalvez explains this is likely due to the platform’s focus on stablecoins, removing complications and confusion from listing more tokens. He stated:
While Binance offers thousands of tokens, El Dorado focuses solely on USDT and USDC, proving that a locally tailored product can become the preferred financial app for Venezuelans.
“Venezuela’s embrace of cryptocurrency isn’t just a local phenomenon, it serves as a blueprint for global financial resilience,” he concluded. Goncalvez’s remarks resonate with Chainalysis’ latest Geography of Cryptocurrency Report, which classified Venezuela as the market that experienced a higher percentage growth in its cryptocurrency inflows. The report also underscored the relevance of stablecoins to fight devaluation in the country.
Read more: Chainalysis Latam Report Highlights Major Crypto Growth Milestone in Surprising Nation
Writers’ take: Stablecoins will remain popular in Venezuela due to the allegiance that we Venezuelans have with the U.S. dollar as a savings currency and the scarcity of physical dollars. While they were once a niche product, they now command a sizable volume of the total dollar exchange in the country.
