Venezuela Bitcoin trade volume has risen to a giant new record yet again as the citizens of the country are increasingly turning to cryptocurrencies as a safe-haven from the economic crisis.
September 2, 2019 | AtoZ Markets - Recent figures have shown that Bitcoin trading volume has hit an unprecedented record yet again in Venezuela.
Since the third quarter of 2018, the number of Venezuelan Bolivars to Bitcoin trading volumes has continued to break records nearly on a weekly basis. This is because many Venezuelans are now turning to the crypto markets to safeguard their wealth as the country’s crippling hyperinflation continues to weaken the economy.
Venezuela Bitcoin trade volume surges slightly amid economic crisis
As per the data released on September 2 by the monitoring resource CoinDance, Venezuelans traded 114 billion sovereign bolivars (VES) on Localbitcoins alone during the week that ended on August 31.
In the graph below, courtesy of CoinDance, it is evident that there has been a steady increase in the weekly LocalBitcoins trading volume since 2018. Interestingly, this recent figure has surpassed the previous record set a week earlier at 77 billion.
Nevertheless, this surge in Venezuela Bitcoin trade volume was significantly small since it has only risen from 465 BTC to 533 BTC. This is an indication that the country’s economy and the currency is weakening rapidly.
As a result, the Venezuelan government has deemed it necessary to place embargoes on foreign currency affecting crypto trading activities indirectly.
Venezuelan authorities Publicize Sanctioned Petro
According to the financial and economic experts, the recent weekly highs in VES trading suggests that the value of the Venezuelan currency is declining against all other world currencies. The inflation rate allegedly dipped in July after the government introduced financial controls. In April, the IMF had projected that Venezuela’s inflation rate would hit 10 million percent but have now lowered the forecast to about 265,000%.
Nevertheless, the government has continued to push its controversial national currency, Petro, a state-issued digital currency. A remittance system for this digital currency was unveiled last week. At the moment, its use perspectives remain unclear after the token encountered severe sanctions.
A deal to allow Traki, Venezuela’s largest department store chains, to accept crypto payments was completed the previous week.
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