New banknotes that are hyperinflated help the number one cryptocurrency set a record in trading in Venezuela this week when the informal markets reached a new all-time high. Following the coming altcoin news, we take a closer look at the analysis.
The data from the monitoring company Coin Dance revealed that up to the 15th of June Venezuelans transacted more than 46 billion sovereign bolivars on the popular bitcoin exchange LocalBitcoins. This is a newly reached figure after the one of 40.9 billion was set earlier in May.
The ongoing bitcoin activity in Venezuela become extremely popular after the new banknotes appeared in August 2018. Under the regime of the Venezuelan president Nicolas Maduro, the national bolivar reached to a point where five zeros were deleted from the exchange rate overnight. This was a very controversial move that laid the foundation for the issuing of the new national cryptocurrency Petro. The hyperinflation has set the currency since it was founded with annual rates to increase up to 8 million percent in 2019.
This week, Maduro rejected the VES and issued new banknotes in larger denominations to counter the slipping value. The Central Bank of Venezuela claimed the move happened in order to ‘’ make the ‘’payment system more efficient and facilitate commercial transactions’’ but there seems to be little sign of appreciation from the consumers. With the BTC price upstick which set at the end of last week, there was some renewed enthusiasm on the part of traders in countries such as Peru, Argentina, and Colombia. All of these countries have been heavily involved in the Venezuela crises and the reports show that the officials are now attempting to increase border control in order to decrease the flow of refugees.
As noted in the latest cryptocurrency news, the president of Brazil Jair Bolsonaro also stated that Latin America should introduce its own version of the Euro but didn’t seem to know what Bitcoin was. He stated that he canceled a project that was aiming to integrate the native Indian population of Brazil by using cryptocurrency. Argentina on the other hand, as a more progressive country, says that the government is in talks with the billionaire investor and bitcoin advocate Tim Draper in order to develop an Argentinian peso –based exchange.
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