Venezuela to See the First Bitcoin ATM Installed in the Country Amid LocalBitcoins Closing
Cryptocurrencies continue to expand in Venezuela, a country hit by a social and economic crisis. The country has registered new Bitcoin volume trading records almost every single week according to LocalBitcoins. However, there are some reports that say that LocalBitcoins is experiencing some issues in the country.
During an interview with Union Radio, the CEO of the Panama-based Cryptobuyer ATM company informed that they will be installing the first crypto ATM in the country in the next two weeks.
On the matter, he commented:
“We already have the equipment physically installed in Venezuela, in Caracas; it’s in its final test stage and we will then be making an announcement on social networks.”
The country is experiencing difficult times amid a socialist dictatorship that is not recognized by several countries around the world and that destroyed the country as a whole. Venezuela was one of the richest countries in Latin America and now it became one of the poorest. Additionally, democracy in the country was one of the strongest in the region during the 70’s and 80’s when almost every country in the continent had a dictatorship.
LocalBitcoins was one of the methods Venezuelans had in order to survive after registering incredible high inflation rates. Hyperinflation has created many issues in the country as well. Individuals are not able to pay for basic needs and supermarkets are empty. There is also a large black market in which citizens that have the possibility can purchase goods such as toilet paper or toothpaste.
Nevertheless, it seems that LocalBitcoin is experiencing some issues. According to data provided by Coin.Dance, the LocalBitcoins Volume has decreased after registering weeks with more than 1.5k Bitcoins moved. The last week has registered just 12 Bitcoin transacted, the lowest number since 2014.
The government has also decided to create its own digital currency known as the Petro, but it has not had the effect that the government was planning. Additionally, there are some reports that say that although it is backed by oil and other natural reserves, the company behind oil operations, PDVSA has $45 billion in debts.
Users are not only using Bitcoin but also other digital assets such as Litecoin (LTC) or Dash (DASH). Although the first Bitcoin ATM could be installed in the coming weeks, it is not possible to be sure that it will last for a long period of time. Indeed, taking the previous experience of India, it might be possible for the government to shut it down.
In India, a local company installed a Bitcoin ATM, the first in the country, but the government decided to shut it down immediately and take legal actions against the owners of the ATM.