In light of Venezuela's ongoing financial issues, it is worth noting that Bitcoin trading within the S.American nation is currently at an all time high.
However, in the midst of its economic crisis, the Bank of England has denied President Maduro access to his nation’s personal gold reserves — the reason given for this ludicrous behavior is that the English government believes that Maduro, the Leader of Venezuela’s USP (United Socialist Party), will liquidate all of the said gold reserves for his personal gains.
More on the Matter
As is quite clear from the ongoing situation, President Maduro is trying to repatriate his gold reserves so as to back his nation’s failing currency. However, this move by the Bank of England clearly showcases that the financial institution is trying to strong-arm the Venezuelan government into following their directives.
Also worth mentioning is the fact that this latest absurdity comes in wake of Donald Trump’s additional sanctions on the Venezuelan gold industry.
Other specifics related to the matter:
- It is estimated that the gold reserves in question only amount to a total of half a billion Dollars.
- At press time, the projected inflation rate within Venezuela is at an all time high of around 1,000,00 percent.
Despite All the Madness, Bitcoin Continues to Thrive Within S.America
Even with all of this ongoing craziness, it is being reported that the use of BTC is currently at an all time high in Venezuela. This is because, the premier digital asset cannot be censored or controlled by any centralized authority (which is in stark contrast to how fiat currency is generally governed).
With that being said, it is still worth remembering that due to the low-adoption of Bitcoin and other crypto assets across the globe, altcoins should not be thought of as a replacement for fiat assets altogether, but rather just a complimentary piece that can help a nation’s economy tackle some of the problems related to inflation better.
With all of this information out there, one can only hope that from here on out, countries like Venezuela start to explore the possibilities being offered by cryptocurrencies and how they can completely shift the balance of power in their favour (moving forward).