Hyperinflation problems that Venezuela has been facing over the latest month is turning this country into a first cryptocurrency country, The Cointelegraph reports.
Daniel Osorio of Andean Capital Advisors told in an interview with CNBC that Venezuela is undergoing the process of quick “Bitcoinization.”
In order to avoid tremendous losses through uncontrolled hyperinflation local business are beginning to accept only Bitcoin (Bitcoin) or money wires of foreign currencies.
According to Osorio, unlike Zimbabwe and other nations where hyperinflation has taken its toll, Venezuela does not have access to enough dollars to manage the economy, that is why it turns to cryptocurrencies as a more reliable payment method.
Since Bitcoin is independent of the black market for Bolivars, it represents a fixed exchange platform for business. Near the end of the segment, Osorio says:
“We may well be witnessing the first ‘Bitcoinization’ of a sovereign state.”