The use of cryptocurrencies for mainstream, practical purposes has always been the aim of a lot of the proponents in the digital assets space. In a recent podcast with Peter McCormack, the panelists discussed the use of Bitcoin [BTC], the world’s largest cryptocurrency, in the flailing economy of Venezuela.
The panel included Jill Carlson, Alejandro Machado, and Jamaal Montasser, individuals running a non-profit organization that is working towards implementing cryptocurrencies as a working use case in the South American country. Carlson stated that when it comes to Venezuela there are are a lot of nuances and that, does not make for great marketing. She further added that the open money initiative, although useful in Venezuela, was not the dream case that many people thought it would be.
The Venezuelan government had previously launched the Sovereign Bolivar, a NEM-based cryptocurrency that was supposed to curb the hyperinflation running rampant in the country. This was also followed by political uprisings which came to a head on April 30, when a coup against the Maduro government orchestrated by the head of the Venezuelan secret police, shook the Venezuelan political ecosystem.
Carlson added that there were a lot of cryptocurrency initiatives, mainly involving Bitcoin, that were out to create a positive financial change in the lives of Venezuelans. In her words,
“Many of the initiatives are super impactful and one organization that I would like to point out is Bitcoin Venezuela, which is a non-profit that is doing some good work on the ground. I think the problem is in how we are trying to solve the problem, we cannot just go in with a hammer. The overall assessment of the country has to be taken, as in what matters to Venezuelans and what is their attitude and behavior.”
Bitcoin and other cryptocurrencies such as Dash have played an integral role in the financial ecosystem of Venezuela, mainly by bypassing the increasingly depreciating Bolivar. Sources have also suggested that during times of crisis and rapid inflation, transaction rates of Bitcoin have skyrocketed within the South American country. Such news has reinforced the belief that cryptocurrencies can create a tangible impact in the financial space.