Venezuelans have just set a new record with the highest volume of Bitcoin trading the country has ever seen. According to data analytics and monitoring service, Coin Dance, Venezuelans successfully made peer-to-peer transactions up to 114 billion bolivars (VES), between Sunday the 25th and Saturday the 31st of August, 2019. This represented an almost 50% jump from the previous week’s 77 billion bolivars.
While this is probably good news for the Bitcoin market in general, the reason for this much volume in Venezuela is directly because of the soaring levels of hyperinflation in the country. The Venezuelan currency is one of the weakest in the world at the moment and the country’s attempt to float its own digital currency as way to manage the situation and also avoid sanctions levied against it by several countries, has failed so far.
Back in July, President Nicolas Maduro gave an order to Venezuela’s apex bank, Banco de Venezuela, to officially recognize the digital Petro (PTR) across all of its branches nationwide. Before that, Maduro had announced that at least 924 million bolivars ($92.5 million), was allocated to the Digital Bank of Youth and Students to assist the opening of one million PTR wallets.
As at July, Venezuela’s inflation rate stood at 265,000% and the International Monetary Fund (IMF), has previously predicted that inflation could hit 1,000,000% before the end of 2019.
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