Where is Bitcoin (BTC) going in Venezuella?

The Bolivar in Venezuela has a hard time. A chance for Bitcoin?

Many private companies and businesses in Venezuela, South America, have long accepted Bitcoin and other cryptocurrencies as a form of payment, including Samsung, Burger King and the chain Traki Stores. For a short time, as screenshots circulating on the net suggested, it looked as if the Venezuelan government would also accept Bitcoin – as a means of payment for creating passports. In the meantime, however, it turned out that the payments were blocked again. The reasons for this can currently only be speculated. Nevertheless, it seems obvious that the government in Venezuela has decided again against the integration of Bitcoin in order to further advance the adaptation of the country’s own cryptocurrency Petro. Another reason could be Bitcoin’s price fluctuations – if the price were to fall, the government would have to cope with losses.

 

Government-launched Petro does not prevail

Bitcoin and Co. are particularly important in Venezuela’s crisis-ridden region. After all, the state currency Bolivar is virtually worthless due to the enormous inflation, which was just under 20,000 percent last year alone. In order to counter the negative trend of the local currency and at the same time avoid the controls of the international capital market, the Venezuelan government launched its own cryptocurrency, the Petro, in 2018. However, this is met with little acceptance among the population. When the government issued the report, it confirmed that each petro was covered by a barrel of oil, but this was ultimately never proven.