Venezuela has been in the eye of the crypto society for a while now. President Nicolas Maduro created the first national cryptocurrency, the Petro, that has been declared illegal by the National Assembly of that country. Despite all the controversy regarding it, the Petro has failed to do anything for bringing prosperity to the Venezuelan people. In fact, since its announcement and creation, things have gone south for Venezuelans.
Venezuelans face an exchange control imposed by the government of Nicolas Maduro. This means that the dollar value has been artificially pegged to the Bolivar. This has created a black market that lets people exchange bolivars for dollars at much higher prices than the official rate. Still, during the last week, this rate has gone higher and higher and the bolivar has devaluated more than 100% only this week. So, Venezuelans are desperately seeking dollars to retain some of their acquisitive power.
The problem with this is that dollars, in cash, are hard to come by, and they have become the norm for making big transactions inside Venezuelan borders. So, instead of buying dollars, Venezuelans are starting to buy bitcoin, according to information from Coin Dance. The site, that aggregates the volume of bitcoin bought weekly, informs that more than 2.7 billion bolivares were traded last week, up from 1.7 billion the week before.
Cryptocurrencies are also convenient for Venezuelans in many ways. They offer them anonymity and, besides this, it is difficult to link anyone with cryptocurrencies. Sadly, this is a solution only available to mid-class Venezuelans and wealthy ones: the minimum wage in Venezuela is roughly 3 dollars at the time of the writing, and it will continue to shrink. The interesting thing is that, even if the cryptocurrency prices shrink, Venezuelans still would profit because the dollar will still be going up against the bolivar. The trade volume is believed to continue increasing in the next weeks.