The world knows Venezuela as a crypto friendly country, but in reality, things are different in these parts of the world. Surrounded by political oppression, economic collapse, and insecurity, citizens of the country are on the brink of collapse.
The state issued cryptocurrency, Petro was based on the country’s oil reserve and exports. But as the oil reserve of the country is getting depleted the country have turned towards other crypto coins to regulate the falling economy. David Diaz, expat of the country stated that most of the country’s population is learning about the crypto world because of the forced exposure. Still, many people in the country are unaware of the real uses of bitcoin apart from its handy way in financial transactions.
The main benefit for Venezuela is the knowledge, what to do with bitcoin, how to escape from the power the Venezuelan government has placed there, not only economically but also for information. There is a lot of censorship there
Citizens of the country are moving to other countries where they can handle the responsibility of the crypto world. A simple peep to peer exchange for paying bills. The government of the country has banned external IPs from entering the banking sector of the country, authorities are trying to control remittance business.
According to a UN report, almost 17% of the country’s population has fled the country due to this enforcement. Expats of the country have joined together to bring back the country to its glory days, they have started various projects that focus on exchange platform which can benefit the citizens of the country.
Migrating country population
People moving out of the country are converting their assets into bitcoin, this can help them escape the harassment at the airport. Carrying around cash and other valuables has become a risky business in the country. People are moving out with all their saving in crypto form.
IMF has predicted that the price volatility of Bitcoin will be negligible when compared with Venezuelan bolivar. It is the real use case of bitcoin but the majority of the country is not aware of this possibility. They have become more affluent with border bitcoin ecosystem when they leave the county, because within the country it may attract the attention of current government officials.
There was a big community in Venezuela, but we were mostly underground,” Díaz said. “In Argentina, I could find a more open community. We could have regular meetups
The economy in the Borderland
Experts in the fields have compared the Venezuelan crisis with Syrian civil war, a mass migration that is capable of turning the country upside down. This leads to the fall of many without any safety net and desperate for basic amenities. Families with low income have been buying in food with EOS tokens provided by the non-profit organisations. EOS tokens will leave both the merchant and consumers with a win-win situation. They cannot use the wallet Bonnum for bitcoin transactions, only EOS tokens will be traded by the wallet.
This allows a single family to access the same phone on many occasions, a single phone to access all the EOS donations. This has the increased the interest of the local merchants to convert EOS into fiat instead of holding it.
you go to this person and say this foreigner is going to be dropping a bunch of money into this town and it’s only going to be redeemable in a couple of locations. Do you want to be one of those locations? It hasn’t been a hard sell
With all things said, crypto has a long way to go in the country, at the present time it is only used as a tool for liquidating fiat. That is a sad truth, the poorer you are the less you can actually use cryptocurrency. Majority of the population in the country is using crypto only for remittance and international transfer, it is used a tool for getting goods delivered to Venezuela. A long-term strategy is still finding its way to get into the country, middle-class part of the country is using it to get everyday amenities.
The country is suffering in the hands of the evolving economy, the crypto market is changing the way things are operating around. Petro cryptocurrency of the country is also declining with the oil reserves. This might be the right time for the economy to step up the economic standard.