With Venezuela firmly in the grip of hyperinflation, a large local department store, akin to Wal-Mart, has begun to accept Bitcoin for goods.
Cryptocurrencies: A viable alternative
More and more cryptocurrencies are establishing themselves as a real alternative to Venezuela’s designated national currency Bolivar. TRAKI, a large local department store, has reportedly begun to accept cryptocurrencies like Bitcoin. According to a reddit thread published by the user ImVito, you can buy “884 articles for school supplies and clothing” in Bitcoin at only $ 260. Allegedly, the money was donated by the Reddit community and the purchased items are distributed to needy children in the country.
The financial disaster in Venezuela
The country has undoubtedly failed to maintain its control over financial sovereignty with fiat money, as the International Monetary Fund expects local inflation to reach one million percent by the end of 2018.
However, the pressure is increasing as the country recently introduced payments via the state-introduced petro-crypto petro for passports. In the midst of the financial crisis, however, there is a clear trend: peer-to-peer crypto currency trading is rising rapidly as state-issued currencies fail.
We already reported that trading volume in November exceeded all previous highs. Just a few months ago, another Reddit user shared his story of how he managed to provide a whole community with NANO donations. At that time, Nano was still at $ 2.71 per coin:
“0.5 Nano is almost a full month’s salary in my country. It’s more than I earned last month.”
In addition, the country’s oldest newspaper – El Impulso – has publicly recommended selling cars for Bitcoin to protect its money from inflation. The article emphasized that users do not need foreign accounts and do not have to keep large amounts of other currencies in cash when using Bitcoin.
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Virtual currency is in many countries not legal tender, or is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.
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