Venezuelans are avoiding the United State’s (U.S) embargo through Bitcoin trading. Bitcoin trading new high in Venezuela has been recorded after the U.S move.
United States President Donal Trump is pressurising the Venezuelan government to bring down socialist President Nicolas Maduro.
The President has utilised both economic and diplomatic methods for this purpose. Trump’s administration considers opposition leader Guaidó as the interim president of the nation.
Now the President has frozen all Venezuelan government assets in the United States. All such property is now directly under the United States administration and has been blocked from being traded, transferred or dealt with in any way.
This has created more difficulties for an already distressed economy of Venezuela. The country is currently facing hyperinflation that will rise by almost ten million percent (10,000,000%) before this year ends according to an International Monetary Fund (IMF) report.
Regardless of this, the Bitcoin trading volumes have skyrocketed with volumes of over sixty-five thousand million (65,000 million) Venezuelan Bolivars (VES) across the last few days. Bitcoin is selling as a US premium and buyers have to pay around one thousand dollars ($1000) more than its trading price of America.
Across the last few years, millions have emigrated from the country, making it the biggest emigration crisis in South America. Now the people have turned to Bitcoin in order to avoid inflation.
If Juan takes over the government as the US President wants, he is a Bitcoin-friendly person who has been raising awareness about it since before 2014. He also announced the launch of a Bitcoin exchange Plataforma Sur Bitcoin. This was one of the earliest exchanges to allow people to convert Bitcoin for local currency and vice versa.
Whether Trump’s administration succeeds with their plot or not remains to be seen. Furthermore, it is uncertain whether Bitcoin or the crypto sphere will benefit from Juan’s appointment as President.