In Venezuela, cryptocurrency has a dual identity, acting both as an oppressor and a lifeline. The government’s own crypto, the Petro, is seen as a tool of control, with its value tied to the nation’s oil reserves and its use enforced in public services. Critics argue that it’s a way for the government to circumvent international sanctions and manipulate the economy.
On the other hand, Bitcoin and other decentralised cryptocurrencies offer a lifeline to Venezuelans. With the national currency, the bolívar, in freefall due to hyperinflation, many are turning to crypto as a stable store of value. Cryptocurrencies also offer an alternative way to receive remittances from abroad, bypassing government controls and high fees.
Yet, the use of crypto is not without risk. Government crackdowns, power outages, and a lack of internet access can make it difficult and risky to transact in crypto. Despite these challenges, for many Venezuelans, the benefits of using crypto outweigh the risks. As such, the country has become a testing ground for the use of cryptocurrency in an economy in crisis.
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