Dogecoin (DOGE), the popular meme-inspired cryptocurrency, has found an unexpected use case: remittances. Venezuelan migrants are increasingly turning to DOGE to send money home due to its low transaction fees, according to a recent Bloomberg report.
Venezuela’s crypto remittances accounted for 6% of its GDP in 2023. That same year, foreign remittances amounted to $5 billion, with 9% ($461 million) consisting of cryptocurrency transactions.
Speaking on the development, Manuel Orozco, Director of the Migration, Remittances, and Development program, noted, “The number of Venezuelan migrants that are sending remittances has jumped 50-60%,” adding that migrants face challenges sending money through traditional means.
Orozco cited the case of Paola Moncrief, a Venezuelan citizen who moved to Texas in 2018. Seeking an affordable method to send money back home, Moncrief initially explored options like Zelle and other money transfer services. She ultimately resorted to using Dogecoin due to its lower transfer fees compared to other cryptocurrencies or stablecoins commonly used on U.S. platforms.
This trend indicates that while many cryptocurrencies are viewed primarily as investment opportunities, Dogecoin is increasingly being used as a practical tool for everyday transactions. As the migration crisis in Venezuela continues, more migrants may turn to cryptocurrencies like Dogecoin for their financial needs.
DOGE’s growing utility has garnered attention among market participants, with one X user saying, “Dogecoin is money.” Dogecoin also referenced the post, reiterating its commitment to ensuring seamless transactions for “everyday users.”
Dogecoin is money pic.twitter.com/lzQzTTH7gK
— minty (@_mintydoge) July 7, 2024
Meanwhile, the world’s largest meme coin by market cap has witnessed a downturn over the past month, mirroring the broader crypto market lull. As of press time, DOGE trades at $0.1091, falling by 0.71% in the recent intraday session, according to CoinMarketCap data. Similarly, Dogecoin’s 7-day and 30-day performance shows declines of 12.50% and 25.73%, respectively.
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