Bitcoin Becomes the Dominant Currency in Venezuela

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Physical version of Bitcoin (new virtual money) and Venezuela Flag. Conceptual image for investors in cryptocurrency and Blockchain Technology in Venezuela.

The Venezuelan economy is still in turmoil, and as monetary inflation rises rapidly, the Bolivar becomes more and more worthless. As a result of all these challenges facing the Latin American country, citizens turned to cryptocurrencies to meet their needs.

In a report published by Chainanalysis, Venezuela’s national currency Bolivar lost value, citizens turned to cryptocurrencies such as Bitcoin (BTC) and Petro in daily transactions, and Venezuela is today the third most active crypto in the world after the United States and Russia. It was stated that it became a currency trading country.

The report also stated that Venezuelan citizens invested in cryptocurrencies to protect their wealth. The Venezuelan people, who follow such a path against hyperinflation in the country, also prefer to receive payments through cryptocurrencies from their relatives living outside the country.

In the past days, it was stated that the taxes collected in the country were planned to be made through crypto money. In a report published by the Venezuelan government, it was stated that the National Tax Compliance Agreement accepts Petro, the country’s local crypto currency, as a method of payment.

Petro is currently used in many areas in the country. Currently, more than 15% of the payments made at gas stations are made through Petro. Previously, the government realized a first in history by accepting payments made with Bitcoin (BTC) for transactions such as passport payments.

LocalBitcoins is known as a platform that also records the increasing Bitcoin trade in the crypto money market. Criptolago, one of the country’s local cryptocurrency exchanges, also increased significantly last year.

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Life is getting harder every day in Venezuela, which is subject to many restrictions by the United States. In return, the people are struggling in different ways to get out of the economic impasse. We can say that the increasing usage rates of crypto coins are one of the best examples of this struggle.

Despite all this data, Peter McCormack, who spent some time in Venezuela, believes that calling Venezuela the center of crypto money is an exaggeration. Stating that citizens have the potential to use all kinds of cryptocurrencies, McCormack claims that the dollar will be the first choice for almost all of them.


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