Binance is already more than just an exchange that operates in Venezuela. Now, the sites that track the dollar exchange rate in the South American country’s market have Binance P2P (peer-to-peer trading) as one of their references to set the exchange rate for the local currency, the bolivar, daily.
Social media pages like @enparalelovzla or @monitordolar (both on Instagram) show Binance as a price indicator among their most recent posts. A) Yes, add a second cryptocurrency exchange to their list, after having used the LocalBitcoins peer-to-peer exchange house as a reference for some time.
Unlike LocalBitcoins, dedicated to trading bitcoin (BTC) for national currencies, Binance’s P2P system also has support for other cryptocurrencies and stablecoins, such as Tether (USDT), DAI or Binance USD, issued by the platform itself.
Binance among the references of the price of the dollar in Venezuela. Source: @monitordolar on Instagram.
In the case of @monitordolar, it is unknown which particular market within Binance they use as a benchmark. But @enparalelovzla makes it clear that refer to the rate of P2P with USDT, used by Venezuelans as an alternative to the dollar in cash.
As part of the hyperinflationary situation of its local currency, Venezuela has been experiencing a kind of de facto dollarization of its economy for a few years. Although the legal currency of circulation is still the bolivar, pricing is carried out in dollars, with an increasingly wide circulation of foreign currency through Venezuelan streets.
@enparelelovzla uses the VES / USDT market for its dollar rate in Venezuela. Source: @enparelelovzla on Instagram.
Venezuela, territory won by Binance P2P
Binance P2P has become a clear alternative to hold funds in foreign currency and avoid the devaluation of the bolivar. This is evident with the appearance of the exchange among the benchmarks for the dollar rate in the South American country and the great liquidity that can be seen in the exchange with offers from Venezuela.
If we stick solely to trading USDT with bolivars on Binance, we find more than 300 trade offers available, between buy and sell. Liquidity margins vary by publication, but some of them have limits of tens of thousands of dollars.
Venezuela has been considered for some years as one of the countries with the highest adoption and trade of cryptocurrencies in Latin America. To a large extent, due to the need to protect the value of the income and savings of its citizens.
Therefore, the scale of an exchange like Binance in the Venezuelan market is not surprising. This had happened with LocalBitcoins previously, where Venezuela leads the volume of trade in the region, according to data from UsefulTulips.