How Venezuela Is Using Cryptocurrency?

June 11, 2020

Cryptocurrency has always been a topic of debate on the international level. Every nation has its own saying on the Cryptocurrency. Some say in favor of the cryptocurrency and some are against it. No matter what the world has to say, Venezuela has taken a liking to the cryptocurrency and has made it one of their major asset that support their economy.

After the World War 2, Venezuela has seen the value of its fiat currency going down on the international platform. But after the introduction of the Cryptocurrency, Venezuela has found a new way to compete in the world’s financial economy.

The economy of the Venezuela was so low that a cup of coffee used to cost more than 2800 bolivars. But after the 2017, Venezuela started investing in the Cryptocurrency. As a result their economy improved and now the same cup of coffee cost 0.75 bolivars.

This astonishing result in the Venezuela have made the Venezuelans invest in the cryptocurrency. The impact of the cryptocurrency was so high on the nation’s economy that even the Venezuelan government has launched their own Cryptocurrency, Petro. This Cryptocurrency is backed by the oil reservoir of the country.

How Venezuelan economy plan revolve around Cryptocurrency?

Venezuelan’s economy plan includes Cryptocurrency in every field. Whether you are doing a business, paying utility bills, doing money transfer, or investing in the trade market, Cryptocurrency is used as a main currency in the Venezuela.

We all know that the Cryptocurrency is designed to be a global digital currency that no government can interfere. This unique nature of the Cryptocurrency has helped Venezuela to stand where it is now. The cryptocurrency is a digital currency that stores the transaction value with the help of the blockchain technology.

Today there are more than 1600 Cryptocurrency all over the world. Out of them Bitcoin stands at the top, the value of the cryptocurrency fluctuate when the Crypto exchanges occurs. The person with the most number of Crypto coins in the market holds more authority in the Crypto trade.

Cryptocurrency has almost replaced Bolivar

The price valuation of the Bolivar on the international market is almost zero. So to make their Bolivar powerful, Venezuelan has started converting their Bolivar into Cryptocurrencies. This has made the price valuation of the Bolivar increase in the past few years. The result was so impactful that the price valuation of the Bolivar increased by five zeros in the last 5 years.

Venezuela is not a developed country, so many of the adults earn their livelihood by freelancing. And they are happy receiving payments in Cryptocurrencies. Even if their national currency is Bolivar, they hesitate to receive payment in Bolivar. It is due the fact that Bolivar market value is negligible compared to Dollar.

Cryptocurrency industry is flourishing in Venezuela

The Crypto trade market is a flourishing industry in the Venezuela. Eight out of ten people are associated with the cryptocurrency on one way another. Cryptocurrency are used like the fiat currency in the Venezuela. Even the Venezuelan government has approved the credibility of the Cryptocurrency in the Venezuela. Hence, every citizen can use Cryptocurrency as they like. Online platforms are used by the Venezuelans for the Crypto exchanges and doing online bitcoin trading.

Cryptocurrency trade activity is quite common in the Venezuela. According to a research, it has been found that out of all the Crypto traders in the world, Venezuelan holds a considerable amount of percentage.

Final Thoughts

By the looks of it, no matter what happen to the cryptocurrency I the future, Venezuelans are much more interested digital assets than the traditional asset. The popularity of the Cryptocurrencies has risen to such a height that there are several Crypto ATM in the Venezuela.

How Venezuela Is Using Cryptocurrency? was last modified: by

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