Il Venezuela some time ago he decided to take the road of cryptocurrency. In fact, digital money has been identified by the Caracas authorities as the best way to try to mitigate the economic blockade imposed by the United States and allies. A decision which had as a logical corollary the launch of its own state crypto, the Petro, which the Venezuelan government is trying to push hard in order to make it an important tool for the economy.
A policy which, even according to many neutral observers, seems to have had considerable success. Enough to allow the South American country to settle in third place worldwide in the ranking relating to the adoption of virtual money, behind Ukraine and Russia. A ranking that was compiled by Chainalysis on the basis of a series of parameters, among which one in particular awarded Caracas: peer-to-peer markets.
A society sick with hyperinflation
Why in Venezuela are cryptocurrencies so successful? The reason is to be found in thehyperinflation which characterizes the sovereign currency, the bolivar. Its purchase value loss is so rapid that many workers and retirees prefer to face the danger inherent in cryptocurrency volatility rather than retain the fiat currency fees they enjoy.
Has been Kim Grauer, responsible for the research of Chainalysis, to remember what is becoming more and more a custom for Venezuelans. Who prefer to turn to exchange peer-to-peer like LocalBitcoins o Paxful, or Cryptolago, online money changer owned by the State of Zulia, which in the last year has seen its turnover increase thirteen times.
Why do non-state exchanges prevail?
As we have seen, Criptolago has seen a large increase in its business over the past twelve months. Which, however, did not allow him to affect the positions of LocalBitcoins in the least. That's according to the site UsefulTulips, recorded a trading volume of 242 million dollars in the same period.
With all evidence, Venezuelans prefer to rely on private exchanges considering them a guarantee in terms of privacy. Or not wanting to allow the tax authorities an excessive level of control anyway.
Petro's role is strengthening
In this context, it should also be remembered how Petro's role has greatly strengthened over the last few months. A growing trend, made such by a series of decisions taken by Nicholas Maduro with the specific intention of moving towards financial innovation. A courageous but also inevitable decision, in light of the great difficulties created for the economy by the US embargo.
Among the many decisions in question it should be remembered that of give each student a wallet in which to keep digital money and Petro's donation in favor of government employees and pensioners during the last Christmas holidays. A policy which has received the acclaim of the cryptographic community present within national borders.
The health situation also favors cryptocurrencies
A trend that, predictably, should continue in the future, also in consideration of the health situation triggered by Covid-19. Which, however, seems currently under control in Venezuela. In fact, about 42 thousand cases have been recorded so far, with 351 deaths. Levels therefore much lower than in other realities of the Latin American continent.