Venezuela and Using Bitcoin in 2019

Last Modified:12 May 2020 14:37:17
Venezuela and Using Bitcoin in 2019

The degree of using Bitcoin in financial transactions and trades in the countries suffering from economic and political problems has increased much more lately. From the beginning of 2019 about Bs160,000 billion (Venezuela currency), i.e., about $63 million has been traded by Venezuelan citizens. Using Bitcoin in transactions and trades of this country is raising in a way that the average of two thousand Bitcoins are traded monthly. This amount has greatly increased compared to the last year. Bitcoin transactions approached 200 Bitcoins per month in Venezuela.

The Venezuelan’s Alternative to Survive in Unsuitable Economic Condition

Venezuelan people are interested in investing in cryptocurrencies. The central bank of this country is unable to control this runaway inflation, and the value of its currency has significantly decreased. The inflation rate in this country is terrible, and seemingly there is no specific will and ability to manage it accurately. Venezuela is rich in oil reserves too; however, it is deeply drowned in political, economic and international problems. Through investing in the cryptocurrency market, e.g., Bitcoin, the people are trying to sustain their nominal capital. Many citizens of this country have immigrated to the other spots of the world, and many get entangled in harsh poverty. In this condition, Bitcoin can help remove some of the nation’s economic problems.

Difficult Situation of Venezuela

Of course, the number of transactions and trades is very low in daily affairs. In fact, using Bitcoin is considered a type of investment among Venezuelans, and if it can find its way in the market of consumption and necessary goods, it can be a great help for the people’s better life. Sanction and inflation have negatively influenced the condition of this country. The cryptocurrencies, luckily, can revive the almost-dead body of this country’s economy.

The government of Venezuela offered a banknote on January 31st, which is considered a type of cryptocurrency. This state-issued cryptocurrency is called “Petro” with the purpose of lowering economic turmoil in the market. Using this cryptocurrency, Venezuela can be somehow active in international trades and transactions and saved from highly burdensome sanctions imposed on them by the U.S.


There are numerous critics in this area, though, and many of them believe that this new alternative is more a scam and fraud than a way to better manage the economy and many scandals can come about as a result of that soon. More time is required for giving an opinion about this issue. Can get poorer in case they don’t help international transactions of the government? Are questions which will be answered in the future. One of the benefits pointed out for cryptocurrencies such as Bitcoin, is for poor and developing countries to get rid of the limitations and deadlocks of the economy in international trades and exchanges.