While many have countries have either outlawed Bitcoin or cryptocurrencies or don’t want to be anywhere near them, many have accepted them with open arms. Venezuela is one prime example of it.
In the past couple of years, the South American country has developed its own cryptocurrency called Petro after concerns that its fiat currency the Venezuelan Bolivar is losing its ground. The Petro was officially introduced in 2018 by president Nicolas Maduro himself to the dismay of the Western world.
A couple of years later, Venezuela has legalized all cryptocurrencies and is enjoying all the benefits they offer. Even bitcoin casino gaming have been a popular past time in South America so the view of bitcoin is definitely changing.
Legal Status
In 2019, strange news shocked the world when Venezuela announced that it has such a big Bitcoin stash that it doesn’t know how to use it. This was near the end of the year and well after the Petro cryptocurrency was announced. US sanctions against President Nicolas Maduro have isolated the South American country from the global financial system and nearly destroyed the Bolivar.
Maduro and the central bank knew it was time for a change, and that the financial support they needed could only come from cryptocurrencies. In just a short time, the government created a cryptocurrency regulating body led by Carlos Vargas. Previously, the government has been seizing Bitcoin operations and collections, but from 2018 onward, it has returned them to their previous owners and dropped criminal charges.
Bitcoin mining and possession are now perfectly legal in Venezuela. From June 2020, Venezuelans are allowed to use Bitcoin to pay for goods and services at 20,000 PoS terminals around the country. There’s great belief that the struggling South American country will get out of the woods sooner rather than later, and it’s all thanks to Bitcoin.
This is exactly the reason why Venezuela is a prime example of how Bitcoin can help struggling financial systems. During the COVID-19 outbreak, it became pretty clear that the fiat money system and royalties are simply too volatile. Even with Bitcoin’s volatile price, the leading cryptocurrency in the world showed a lot of promise in these perilous times.
What Does the Future Hold?
The future for Bitcoin in Venezuela is very bright. With Bitcoin mining and possession perfectly legal, Venezuela may end up a cryptocurrency haven we’re all been waiting for.
It’s a perfect example of how cryptocurrencies can help a struggling financial system. Banks are not involved in it, so debts will be a thing of the past. With no banking fees involved and a peer-to-peer focus, it becomes clear why people like it so much and governments and banks hate it.
While there were many opponents to Maduro’s Bitcoin legalization, we can safely say that Venezuela is on the right track. The Bolivar may be failing, but Bitcoin is going strong together with the Petro. Maduro may be hated by central financial systems and the West, but he has given his people hope with the legalization of Bitcoin and cryptocurrencies.
If other countries were to follow Venezuela’s example, we would all be enjoying the perks of Bitcoin. Such a time will hopefully come soon.