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RE: Venezuelan Banking System Dollarization Process
Wow, great post @juanmolina! Since there is so much mistrust of the government, do a lot of Venezuelans keep dollars or other fiat physically at their homes?
This is a savings measure that some Venezuelans have implemented. Although this involves security risks, you know, because of the crime.
That is terrible. Do more people hold BTC, ETC, etc...? Is it safer than holding fiat? Do people use crypto to buy things? Sorry about all the questions. I hear Andreas Antonopoulos talk about Venezuela every so often and its rarely good. It saddens me; which is nothing compared to what Venezuelans go through on a daily basis.
Most of the Venezuelan population does not even know what BTC is.
Currently, due to the lack of physical banknotes of national currency, the common citizen has adopted the dollar. That is why they have it stored in their homes.
But don't think they have a lot of money, they just have what it takes to survive. Another large part of the population has absolutely nothing, they literally don't have a penny.
However, a minority who maintain ties with the government (many are frontmen for politicians) are those who have great wealth, they are millionaires in dollars, btc, eth, gold, and any other valuable asset you can imagine.
Most of it is the product of money laundering extracted from the nation's coffers, a product of drug trafficking and the illegal exploitation of gold and diamond deposits.
All under the complacent gaze of the government authorities.
Thank you for the informative reply @juanmolina. This brings to light even more reason why Project HOPE must succeed and thrive! I know it doesn't help with the systemic economic and political issues in Venezuela, but it certainly will help create an additional revenue source for people.