Cryptocurrency has always been surrounded by various rumors. Some of the rumors are the facts, while some are just faced tales. In the past decade, Cryptocurrency has brought irreversible changes in the world’s financial economy. One of those changes is uplifting Venezuela’s economy.
There have been several critics criticizing on the credibility of the Cryptocurrencies. But for the Venezuelans, those critics don’t matter. Venezuelans have firsthand experience on the positive outcomes of the Cryptocurrency.
Venezuela has been on the growing inflation rate since the end of World War 2. Due to the inflation rate, the country has never reached to a point where it can enjoy a lavish life style. Even the government employees are paid around $5 per month.
Before Cryptocurrency ever came to existence, the price of one cup of coffee in Venezuela was 2800 Bolivar (Venezuelan currency). But after the introduction of the Cryptocurrency, Venezuela found a way out from the inflation. Venezuela stared trading in Cryptocurrency that boosted their fiat currency. And as a result, today, the price of the same Cup of coffee is 0.75 Bolivars.
Today, more than 60% of total citizen of Venezuela is related to Cryptocurrency trade in one way or another. The impact of the Cryptocurrency on the Venezuela’s economy was so positive that the Venezuelan government launched its own Cryptocurrency, Petro. This Cryptocurrency is powered by the oil reserve of the Venezuela.
Venezuela’s Strange Economic plan
Venezuelans have really taken a liking to the cryptocurrency. Cryptocurrency is used in every field of work in Venezuela. Whether you are paying your utilities bills, doing money transfer, or buying and selling of products, Cryptocurrency is used everywhere.
This large scale use of the cryptocurrency is also due to the fact that there are almost negligible charges with the Cryptocurrency transactions.
We all know that the Cryptocurrencies are highly volatile decentralized digital currency. And the whole purpose of this currency was to work outside the radar of the any government institution. It is all thanks to the blockchain technology that this kind of advance currency was produced. With the blockchain technology, all the transaction occurs on public ledger.
Facing high hyperinflation, Venezuela was able to see the future possibilities in the Cryptocurrency. And started working with all kinds of Cryptocurrencies.
How Cryptocurrency is helping Venezuela in Inflation crisis
The current rate of the inflation rate in Venezuela is 3.5%. With this kind inflation rate, every year there are thousands of Venezuelans that fall under the poverty. The Venezuelan has lost their confident on their fiat currency Bolivar. People of the Venezuela have stared storing their money in Bitcoin or any other form of Cryptocurrencies.
Venezuelan mostly do freelance work and in return they accept Cryptocurrencies as payments. The price evaluation of the Bolivar is so low that it is almost zero if compared to the Dollars. This is the reason why, Venezuelan accept payment in the Cryptocurrencies.
The popularity and the usability of the cryptocurrencies have risen to the point that you will be able to see Cryptocurrency ATM all over the Venezuela. With Crypto ATM, Venezuelan can receive Crypto payments from any one and from everywhere.
Not only ATMs, but there are several online platform as well where the Venezuelan spend their time with the Crypto exchanges. One of the most used platforms is bittrader. With the help of this platform, Venezuelan does Crypto exchanges and invests in the trade market.
By looking how the Crypto trade market is flourishing in the Venezuela, it is hard to believe that Venezuelans will stop using the Cryptocurrency in the near future. For the time being, we can say that at least there is one country that has seen the full potential of Cryptocurrencies and have take taken their first step to make them mainstream currencies.