The debilitating state of Venezuela’s economy has often made it he used as a case study when talks about how Bitcoin can help an economy is drummed up. Presently, the country is battling with loads of problems at the economic level ranging from inflation and the decline in its value.
But even though the usage of Bitcoin across Venezuela is not something that would be described as Mainstream adoption, the country has grown in terms of adopting the digital asset. Presently, they are third on the log of countries with the most Bitcoin adoption, beating other countries to claim the position, a report compiled by analysis firm, Chainalysis.
Bitcoin not yet mainstream in Venezuela
With that being said, the country will be bracing up for any changes in that aspect as it is set to undergo critical changes in its societal and political scenes. Some elites in the country are turning to Bitcoin in a bid to escape the harsh realities of the country because getting a dollar in the country is very hard. Dollars cannot be bought in Venezuela due to a recent regulation that has branded the move illegal.
With the regulation still in place, the citizens who wish to transact would have to go through the various black markets to get dollars. Now, such laws have been shelved due to the dollar’s recognition as the second stand-in currency of the country.
The Maduro-led government conceded defeat after the recent downfall of the country’s currency. To back this up, the government also gave the go-ahead to the financial institutions to start accepting dollars from anybody who wishes to open an account using the premier currency.
Companies are promoting the idea of payment in dollars
Companies have also touted a long abolished idea of paying their workers using the dollars instead of their native currency. A question that has risen is the role that Bitcoin would play in the economy since they have started accepting dollars to exchange.
According to experts, they do not see a big reason to think about it at this point. An analyst believes that even though the dollar would help against inflation across the country, it would never take up the place of Bitcoin in the country.
Another economist has pointed out that Bitcoin has been seen as an integral part of the economy that has worked despite not relying on fiat currencies. The economist points out that even though it has not happened yet, he is hoping that the digital asset’s use case skyrocket as the days roll by. Presently, the country holds the record in Latin America for the highest peer-to-peer trading volume. A recent survey carried out on local bitcoins backs up this fact.
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