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  • With the current growth rate, active users will surpass one million before the end of 2020.
  • The need for a transactional currency in the country is the driving force in the surge in numbers.

Active user wallets in Venezuela have surged 562% since May, according to reports from digital currency Dash. A significant 29% rise bolstered this number in just December. Mark Mason, a Dash PR representative, clarified that the surging number was not based on user installs but active ones instead. Anyone who has been online at least once in the past month is deemed as an active user. With the current growth rate, active users will surpass one million before the end of 2020.

The need for transactional currency is the driving force in the surge in numbers. Venezuela has gone through hyperinflation on a scale that has made the local currency practically worthless. The citizens depend on non-governmental currencies for more stable transactions, which explains the adoption of Dash and Bitcoin. 

In response to the turmoil, Venezuelan President Nicolas Maduro released a new crypto Petro (PTR). Pensioners and government employees were each given half a PTR. However, citizens are still concerned about PTR as it is linked to government control. Hence, the use of digital assets like Bitcoin has surged in the country. 

While governments can manipulate the value of currencies, digital currencies are governed only by network consensus. For local users, manipulation could result in losses in the value of their savings. With consensus-based currencies, values might fluctuate but cannot be manipulated by external forces.