New Bitcoin Trading Record In Venezuela Happens As New Currency Reforms Sets In
Venezuela‘s national fiat currency Bolivar became useless as the hyperinflation engulfed the country. The fiat currency is not even worthy of the paper it is printed on. When a certain doom was prevailing, Bitcoin and cryptocurrencies came in as a savior for the nation. Ever since the Venezuelans came to know about cryptocurrencies, the country has recorded more trading volumes on crypto exchanges than the traditional ones.
In the past week, Venezuelans have traded 46 billion Bolivars on the localbitcoins exchange. This also marks the highest ever traded volume on the exchange. The last highest was around 40 billion set in May. The fondness of Venezuelans for Bitcoin has become an indictment of the national fiat Bolivar.
The distrust in the government is understandable given their corrupt nature has been the first reason for the ongoing doom. Not so long ago the president Nicolas Maduro, the Bolivar's exchange value lost 5 zeroes overnight and similarly, the regime also saw the invention of failed state-backed crypto Petro.
The Newly Introduced Fiat Currency Notes
President Maduro is in news again for issuing new Bolivar banknotes with higher denominations to counter the effect of hyperinflation. The central bank at the time of the launch called the new notes as effective measures to make the payment system in the country more reliable. However, the citizens have lost faith in their government long back and they did not seem to be much supportive of the current measures.
On the contrary, the citizen sees the current introduction of new banknotes as government's surrender to the ongoing banking crisis in the nation. While a few pointed towards the irony of the situation, where the president has decided to add a few zeroes on the new banknotes which he erased a few weeks back from the value on the exchange.
It seems the citizens of Venezuela have found their redemption in Bitcoin as they know that the virtual currency is independent and free from the clutches of any authority, which won't lead them to a similar crisis in future.
Apart from Venezuela, the rise in Bitcoin prices which breached the key resistance of $9,000 led to increased trading volumes from the countries like Argentina, Colombia, and Peru. Argentina is looking quite optimistic towards the Bitcoin as the country's president recently hosted famous angel investor Tim Draper. Colombia and Peru, on the other hand, are quite well aware of the situation in Venezuela and their spurred Bitcoin trading activity could be influenced.