With the ongoing situation in Venezuela getting much more critical, a Venezuelan man has dropped details concerning how his family has been surviving only on Cryptocurrency.
Cryptocurrency has basically him survive the crisis. He stored all his money in Bitcoin cryptocurrency and simply exchanged little amounts into the Venezuelan currency. Bolivar; Venezuelan currency has tremendously increased.
Choosing Bitcoin And Not Bolivar
The man surviving on Cryptocurrency is known simply as Carlos Hernandez. He lives in Ciudad Guayana and has shared his touching story with the New York Times paper. Bolivar increases daily with roughly 3.5 percent.
Carlos claims that he does not have any Bolivar as he stores his money in Bitcoin cryptocurrency. To keep his cash in Bolivar will simply mean signing up to a monetary suicide.
Moreover, Carlos stated that he has no bank account overseas, not with the Venezuelan crisis. By the way, with the Venezuelan currency regulation, it would be extremely difficult for him to utilize the regular currency such as dollars.
In the same vein, Cryptocurrency has aided in taking care of Carlos’ family expenses. His father who is a government employee makes a low sum of $6 monthly. For his mother, she has no source of income as a stay at home mom.
Carlos’ brother, known simply as Juan is a twenty-eight years old lawyer. However, one would think he was earning fine, but that was not to be the case. Due to the extreme increase in Bolivar, Juan turned into a freelancer.
There is no money, and every single person is becoming poorer daily. Juan relies on Cryptocurrency also to make a living. Juan made this decision because there was no way he could make use of Paypal.
Basically, websites pay freelancers through PayPal, but with the exchange control in the banks in Venezuela, it was not possible.
Additionally, with the aid of Cryptocurrency, Juan’s money have not been confiscated at the borders in his attempt to migrate to Columbia. The military personnel in Venezuela usually seize the cash of people trying to leave the country.
Conversion Of Cryptocurrency Into Bolivar
To purchase the daily necessities of life like milk, Carlos stated that the Cryptocurrencies would have to be converted to the Bolivar currency first. And so, he makes use of Localbitcoins to search for buyers.
These buyers make use of the same bank for the wire transfer to be sent swiftly. However, Carlos made mention of the fact that he is not able to convert lots of bitcoins all at once.
Though, the Venezuelan government does not track Cryptocurrency transactions, at least not for now, but, they, however, monitor all transactions that are in Bolivar.
Even more, if any transaction is worth roughly $50 or more than that, the account will be frozen swiftly. This freezing will occur until the individual involved gives a detailed explanation to the bank on where the cash was coming from.
Meanwhile, Localbitcoins is a prominent platform in Venezuela. Its trading volume has been rising gradually and has hit a record high of roughly 2487 bitcoins.
To Wrap It Up
There is another universal exchange platform known as Paxful that has record volumes in Venezuela also. It increased to about 74.66 percent. The amount of trades on the platform has also significantly increased.
Meanwhile, Nicolas Maduro’s government have issued decrees to control cryptocurrency activities and taxing remittances in Venezuela.