Venezuela Turns To Bitcoin As National Currency Bolivar Fails

in bitcoin •  3 months ago

Amidst tough US sanctions, bolivars have lost all value

Image source: pixabay - ArmyAmber

Venezuela's human rights issues have not been gone unnoticed. Internal political chaos, economic turmoil in a state of dystopia unseen since the last currency collapse that occurred in Zimbabwe during the 2000s. An oil-rich nation under President Maduro's ruling, plagued by shortages of food and medicine, surging malnutrition, disease and crime as reported by The Independent - Ben Chu.

When oil prices were high, Venezuela did well promoting populist social welfare policies, increasing social spending. But after the global oil prices crashed, the oil-dependent economy could not recover from the crisis, resorting to drain their nation's reserves and also led to the hyperinflation of the currency.

To circumvent US-led sanctions of bolivar, Dictator Maduro launched a cryptocurrency named "petro" backed by oil reserves. His propaganda was broadcasted on national television stating:

“Venezuela will create a cryptocurrency,” backed by oil, gas, gold and diamond reserves, ...[as it] would help Venezuela advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade.”
Source: Reuters - Alexandra Ulmer

The opposition party in Venezuela discredits "petro" in total entirety.

“It’s Maduro being a clown. This has no credibility,” opposition lawmaker and economist Angel Alvarado told Reuters.

Image source: pixabay - medinaalfaro

The country has cunningly suppressed Bitcoin in the country, its state-owned internet service provider, CANTV, blocked bitcoin-related websites and mining pools, while the country’s biggest cryptocurrency exchange SurBitcoin was forced to temporarily shut down operations after Banesco bank closed its account. Source: CCN - Francisco Memoria.

Since end of 2017, bolivar to Bitcoin trading have increased tremendously, hoping to preserve their wealth outside the country's dictatorship. Venezuelans turned to peer-to-peer cryptocurrency exchanges such as LocalBitcoins to bypass governmental bans in order to get access to foreign goods. As for the nation's cryptocurrency, petro, the citizens just aren't buying it.

Hyperinflation in the last few days have seen shocking devaluation of bolivars, trading at around 6.7 million VEF per 1 USD on August 17, before suddenly depreciating rapidly to 9.2 million. Source: bitcoinist - Wilma Woo. Trading volumes on LocalBitcoins have surged and data from Coin Dance reported a 20 trillion bolivars in volume.

Image source: pixabay - 12019

Bitcoin Venezuela is an ongoing Bitcoin education resource to aid Venezualans to buy Bitcoin in exchange for good and services. Professionals with skills to offer are also encouraged to seek job opportunities to work outside Venezuela and get paid in Bitcoin, or any other foreign currencies.

While we may be sitting comfortably enjoying our morning coffee and reading articles, a Venezuelan may be struggling to live in a state of poverty or rioting to fight for his rights. It is always easy to rely on our governments on a sunny day. But never get complacent as economic crisis can clearly turn a fiat currency into paper money. Hence to hold on to a private key, knowing that an internationally recognized digital credit system exists, is important for every individual.


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The US govt makes me sick...thank god for crypto. IN BITCOIN WE TRUST

Excelente articulo. Saludos desde aqui.

y si, evidentemente la falta de planificación unida con políticas economicas populistas causan que el pais mas rico en recursos de América Látina esté en la situacion de zimbawe. Y atreviendome ha contradecirte, creo que no se puede llamar crytomoneda a algo que seesta tratando como monedas fiduciarias. creo que nunca he escuchado de ninguna cryto que se respalde tenga reservas, que no se puedan adquirir libremente y que su valor no los dicte el mercado sino el petroleo.

Gracias por la publicación.


Hi @tommymartinez, yes I agree with you that the oil-backed petro coin is nothing but an excuse for the government to evade US sanctions and never in a any case help the citizens of Venezuela.


totalmente de acuerdo contigo.!!

La crisis que vive mi país, nunca había pasado. Anteriormente antes de que llegaras estas bestia, se habla del mal gobierno de Lusinchi o Luis Herrera. Pero este gobierno rebaso la locura, la maldad, la inseguridad y el hambre. Ya los asesinatos son decapitaciones y mutilación, la comida buscar en las basuras, la desnutrición en nuestro niño y ancianos. Esto es nuestro país actualmente. Lamentablemente.


Hi @fanycaraballo11, I wish the best for you and your country. May you be blessed and I hope the government gets kicked off soon. Really upset to see this happening in your country.

Great article, are you from there?


No, I am not, but I do hope for the best for Venezuela

Nice article... Thank you to keep giving information about my country... Thank you se much...

I wonder how many countries are next....

buena informacion ya sigo su perfil