The Venezuelan financial watchdog Sudeban is working on a regulative system to monitor peer-to-peer exchanges to maintain the Bolivar’s value. The financial analysts argued that crypto exchanges in the country had negatively affected the Bolivar value.
Impact of Peer-to-Peer Exchanges on Bolivar Value
The decrease in the value of the Venezuelan Bolivar currency worries investors and the government. In the quest to rescue the Bolivar value from shrinking further, the government encourages the regulators to be keen on the crypto transaction.
A Tweet update from Sudeban on December 20 confirms that irregularities in the crypto space impacted the market performance of the Bolivar. The tweet reaffirmed that Sudeban had joined hands with Sunacrip to develop a system that will scrutinize real-time crypto exchanges. The system will also enable the government to compare volumes traded in crypto and through bolivar currency.
Notably, the sharp decline in the Bolivar value created a different perception among financial experts. Some argued that the cold crypto winter fueled by the collapse of FTX adversely affected exchange rates. On the contrary, for other financial analysts, the tripping of the Bolivar was caused by the high adoption of digital assets during the holiday season.
Relationship between Bolivar and Crypto Currency
Despite the Venezuelan government’s failure to clarify the relationship between the Bolivar and peer-to-peer exchanges, analysts’ growing interest provides clarity. A national law firm knowledgeable on crypto-related issues, Legalrocks reveals that since 2021 over 75 have been dismissed. Legalrocks echoed that the alleged firms were conducting suspicious crypto exchanges.
The announcement made by the president of Venezuela, Nicolas Maduro, proclaimed that the stringent measure enacted aimed at restoring the bolivar value. The president expresses his dismay at the worsening devaluation of the country’s currency. On December 28, the Bolivar value had tightened the muscles at 20 Bolivars per dollar. A month ago, Bolivar traded at 12 Bolivars per dollar and experienced a 40% decrease in value.
Undeniably, the sideways swing of the Bolivar value worries public and private financial analysts. The financial analysts evaluate the bolivar trend in December and 2023 against predicted inflation rates. The Venezuelan economist, Jose Guerra, forecasted that December inflation would gamble around the 30% mark.
Besides escaping the hyperinflation that lasted almost four years, Venezuela experienced a 119.4% surge in prices this year. In the meantime, the Central Bank of Venezuela has withheld the inflation figures from October.
Editorial credit: Fedor Selivanov/ Shutterstock.com
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.