The crypto markets have faced extensive volatility in recent months. Analysts and commentators believe that the market will stabilize after regulators put in place policies and regulations to reduce the investment risks in the nascent market. As the US dishes out sanctions and tariffs to foreign governments and products respectively, Bitcoin has gradually turned into a haven
The economic crisis in various Latin American countries has made the citizens turn to the largest crypto to safeguard their wealth. Reportedly, Bitcoin trading has hit an astounding new record yet again in Venezuela. Reports reveal that as the country’s detrimental hyperinflation continues to weaken the economy. Therefore, many people are now turning to the crypto markets.
With more and more Venezuelans joining the crypto world, there is a slight hope of recovery but challenges keep coming up.
Localbitcoins Volume Increases by 48%
On September 2, monitoring resource, Coin Dance, published interesting data that tracks trade volumes on P2P crypto exchange platforms. The data revealed that Venezuelans traded more in the last week of August than ever before. In that period, 114 billion sovereign bolivars (VES) were transacted on Localbitcoins alone.
That figure surpasses the previous record by far. Interestingly, the previous record came in at 77 billion a week before. However, in terms of bitcoin, this uptick was significantly small since the transactions rose for 465 BTC to 533 BTC. Hence, it shows that the country’s economy and the currency is weakening rapidly.
The government has gone ahead to impose embargoes on foreign currency affecting crypto trading activities indirectly.
Authorities Publicize Sanctioned Petro
According to the financial and economic experts, these weekly highs in VES trading show that the Venezuelan currency is dwindling as it devalues against all other world currencies. The inflation rate allegedly dipped in July once the government introduced financial controls. Reuters reported in August that Venezuela’s annual inflation rate of July was around 265,000% compared to the 10,000,000% circulated before.
Nevertheless, the government is continuing to push its controversial national currency that features Petro, a state-issued digital currency. A remittance system for Petro was unveiled last week. However, its use perspectives are still unclear after the token encountered massive sanctions. According to the United States non-profit report of July, Venezuela’s official alternative digital currency, Petro, which is state-issued, is a failure.
A deal to enable Traki, Venezuela’s biggest department store chains, to accept crypto payments was completed the previous week.