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Vandana Malik
Mar 26, 2020
by Vandana Malik

Venezuela Uses Bitcoin as a ‘Bridge Currency’

Venezuela
Venezuela, the state which has been struggling with a failed economy and hyperinflation is finding solace in digital currency to survive. A recent research study revealed that Venezuela is using bitcoin as a ‘bridge currency’. It is bridging the gap between the local currency and US Dollars.

This was revealed during the time of electricity black-out which happened across the country on March 7. This black-out had a huge impact on the economic activities for several days across the country.

Amid this black-out and it's after effects, it has been revealed that there was a huge impact on the crypto trading as well. There was a huge drop in Bitcoin which has been affected greatest in crypto trading due to this black-out.

Crypto trading drop in other Latin American countries

This huge drop in crypto trading was seen in other Latin countries as well including Argentina, Chile, Mexican and Peru.

Amid all of this, bitcoin has emerged as the bridge currency across the whole of South America. As different currencies of South America are suffering through high inflation, the dollar is coming up as an ultimate saviour. The U.S. dollar along with other Fiat currencies has been in high demand across the continent.

Local informal sites being used to convert currencies 

It has been recorded that the foreign exchange rate is extremely high across the continent. Due to such high rates, it becomes very difficult and inconvenient for different businesses to conduct operations.

As a result of these high rates, people have started using some informal sites like localbitcoin.com. This alternative has been used across the continent to exchange the currencies. 

Through all these changes and activities it has been noticed that the overall volume of bitcoin trading is decreasing. This decrease in trading is rapid and could be seen across the whole of South America with Venezuela in focus.

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    Vandana Malik
    Vandana has received Master of Arts degree in English from GEU Dehradun. She is currently working as a content writer with Agio Support Solutions and earlier worked as a sub-news editor at Business News and Information Services Private Limited. She is an enthusiastic content writer and aims to bring a compelling yet informative content to the audience. Meanwhile, enhancing her own knowledge in the cryptocurrency and blockchain industry.

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