Venezuela is abandoning the US dollar for international payments while the floating exchange rate system of the country will be operating in euro, yuan, and other convertible currency. Meanwhile, P2P Bitcoin trading volume is making records by registering the highest volume.
No more US Dollar for Venezuela
Venezuela is dropping the US dollar for all the future transactions on the Venezuelan exchange market.
The US recently introduced sanctions against Caracas, Venezuela’s capital,
“block the possibility of continuing to trade using the US dollar on the Venezuelan exchange market,” that according to Tareck El Aissami, the country’s Vice President for Economy are “illegal and against international law.”
It has been posted on Twitter stating (rough translation),
“All transactions in the national market, including auctions of @ dicomve, will be referenced with euro, yuan or any other convertible currency.”
#ANUNCIO || Vicepresidente Sectorial de Economía @TareckPSUV: Todas las transacciones del mercado nacional, incluyendo las subastas de @dicomve, van a estar referenciadas con euro, yuanes o cualquier otra moneda convertible. #RegionesEstratégicasProductivas pic.twitter.com/jVYeoM4Aj3
— Vicepresidencia Vzla (@ViceVenezuela) October 16, 2018
The vice president further shares the “financial blackdae” by the US affects the country’s public as well as private sector including agriculture and pharmacy. He also said the floating exchange rate system, Dicom of Venezuela,
“will be operating in euro, yuan or any other convertible currency and will allow the foreign exchange market to use any other convertible currency.”
The sanctions imposed by the US has put a pressure on the country contributing to its social and economic crisis resulting in a shortage of basic necessities, hyperinflation, and devaluation of a national currency. This led to over 2.3 million people to leave the country this summer, according to the UN.
Meanwhile, P2P Bitcoin trading volume reaches heights
It is no surprise that Venezuelans are moving towards Bitcoin and cryptocurrencies as the country goes through a severe economic condition. According to the Coindance, the P2P bitcoin trading volume is making records at over 903 million bolivars in October.
With country’s hyperinflation reaching record heights and its own currency devaluing, cryptocurrencies are becoming a popular alternative method. Recently, Coincola, a crypto exchange partnered up with Dash, a cryptocurrency actively in use in the country, to target the Venezuela market.
Cryptos are gaining traction amidst the government’s attempts to float the petro cryptocurrency which doesn’t have much presence in the country. Recently, the government mandated the use of petro for passport payments.