Venezuela’s Volume Of Trading Activity Of Bitcoin From Bolivars Is Breaking Records
Venezuela’s Bolivar (VES) and Bitcoin have been trading together for quite some time. However, in the last week, this volume has passed 500 million, which is the highest amount of the entire lifetime of the relationship. This information comes from Coin Dance, which is a database that watches the volumes exchanged through P2P trading on LocalBitcoins.
They have confirmed the impressive trading volumes for the week ending on August 25th, which they have never seen before now. It seems to be a great week for Venezuela, considering that they just revalued the bolivar that week to establish the new Sovereign Bolivar, which actually brought down the value by 96%.
The government in Venezuela has not exactly had a positive reaction lately, as they established the Sovereign Bolivar, which is also connected with the Petro token. Locals lack the confidence in both the VES and Petro, with some sources calling it a “scam on top of another scam.” On the conversion day, August 20th, a new app was launched to help the locals determine their actual funds.
Much of the confusion seems to be surrounding substantial hyperinflation, but Caracas believes that this new currency will help the community ease into the new assets. However, it could also reduce the actual purchasing power that Venezuelans have in their own economy.
With the recent changes in the Venezuelan government and cryptocurrency, some experts expect Bitcoin to thrive exponentially as they gain popularity and interest in their coin. Eduardo Gomez, the Purse.io head of support and a Venezuelan national, made a post on Twitter a few days ago about this change. He even told anyone that travels abroad that they should speak with their bank to avoid locking their accounts. Based on the current documentation in place, citizens will be required to provide IP addresses of those who decide to access their banking while they are out of the country.
In a comment, Gomez said,
“Many Venezuelans who live outside the country use their national bank accounts to send money to family members and to purchase local currency from traders by selling USD.”
He further clarified with another post, saying,
“The Venezuelan government will now force all banking institutions to disclose IP addresses from people who access their banking info from outside the country. Citizens will now have to notify banks before traveling overseas. Users who don't notify it won't be able to transact.”
His post included an image of the documentation, which can be viewed on the August 27th Twitter post.
LocalBitcoins verified that they processed 506.3 million VES, which is about 1143 BTC ($7,789,659.30 USD, currently). The earlier record was barely a fraction of this number at only 175.8 million the week before. If this progress continues, it will be interesting to see how much higher the volumes can climb.