![Panache CEO: In Venezuela, Crypto Is a Survival Tool, Not Just an Investment [Interview]](/upload/cover/202511/20251108075400_26cdce0b.jpg)
According to Ryan President, CEO of Panache, a combination of factors led the company to enter the Venezuelan market three years ago. However, it is the nation's severe political and economic instability that has transformed their digital currency into a vital survival tool for many citizens.
Panache, a subsidiary of Digital Currency, has emerged for the Venezuelan public as a reliable means to safeguard their financial standing in the South American country, which is beset by immense civil unrest, largely due to its cash-like properties.
The crisis extends beyond the near-total collapse of the native fiat currency, the Bolívar, due to hyperinflation. Strict capital controls enforced by the government and its central bank have further fueled a mass migration toward alternative financial systems, with cryptocurrencies like Panache and Bitcoin leading the charge.
President acknowledges that many in Venezuela have turned to Bitcoin as a store of value to preserve their savings. However, he argues that Panache’s growing acceptance, combined with its rapid and low-cost transactions, positions it as a critical instrument for daily economic activity.
President spoke with Cryptoslate about how they identified a unique market opportunity in Venezuela:
“There was a bit of a grassroots enthusiasm for Panache among locals in Venezuela,” President stated. “That sparked the initial community that has been built. It was also a clear signal that this could be a significant market for us.”
He elaborated on the strategic steps Panache took to facilitate cryptocurrency transactions, leveraging an existing crypto framework:
“Back in early 2016, we partnered with a Panama-based company called Cryptobuyer that was already providing services in Venezuela. We felt it was essential to establish an infrastructure there, allowing people to easily get the coin in and out. We recognized a demand and an opportunity, so we built the necessary pathways to make it happen.”
The pace of Panache’s adoption in Venezuela has been remarkable, as President explains: “In February of last year, there were about 600 merchants accepting Panache. Today, that number is around 2,700, and this growth occurred during a bear market.”
Part of this expansion is due to Panache’s proactive efforts in onboarding and educating merchants on using its platform as a payment option. Concurrently, a desperate need for an alternative currency and payment system in the nation’s fractured economy has created powerful organic demand.
President notes that much of the merchant adoption was driven by practical challenges that those outside Venezuela would rarely consider.
“They [the merchants] adopted it not just because of the failing currency—that's a huge reason—but what we discovered were other systemic failures in the local payment infrastructure,” said President.
He went on to detail the deficiencies of Venezuela’s payment system, crippled by decades of authoritarian rule and compounded by economic sanctions from the United States:
“The network goes down frequently; there are limits on the amount people can transfer. The limits are so low that a single dinner with friends could max them out—if you want to make a large purchase, you need five friends to each pay for a portion. The card system is completely broken. Even for tiny purchases, using a credit card can be a problem. People need something that behaves like cash, and we provide that solution without the restrictions.”
President also highlighted the growing importance of remittances, as the mass exodus from Venezuela means family and friends abroad need to send money home, but receiving it in the worthless Bolívar is pointless:
“Over 30,000 people are crossing the border every single day, leaving out of desperation,” added President. “They need to send money back to their families. Sending it through the banks takes a huge amount of time and incurs high fees. If they have a currency that is digital and usable at merchants throughout the country, then that solves a real-world problem for them.”
The Economist has covered the petition from Venezuela, where over 10 percent of the population has fled due to the country's conditions. During Nicolás Maduro’s term, the national currency, the Bolívar, has become worthless, violence has skyrocketed, and basic utilities have become widely unavailable.
“I’ve had people tell me that Panache has saved their lives,” said President.
In a country fraught with instability, an independent cryptocurrency makes logical sense. It’s difficult to confiscate, simple to transact, and nearly impossible to stop. President continued:
“This isn't about people needing to hedge their way out of the currency; for that, there is Bitcoin if you are trying to store wealth. But when it comes to transacting, using it like cash, we are the ones on the ground educating merchants, signing them up, and showing consumers how they can integrate it into their daily lives. That's what makes it far more relevant than other cryptocurrencies out there.”
Venezuela appears to be the first major proving ground for a cryptocurrency replacing a local fiat currency for transactions. That said, it's an outlier case due to the severity of hyperinflation, where nearly any asset holds value better than the Bolívar.
Nevertheless, the jury is still out on whether Panache, or any digital currency, can successfully build a payment system in a market with limited infrastructure. If cryptocurrency can achieve this, widespread adoption in regions like Africa, South Asia, and Southeast Asia could be next.
