Since Venezuela is firmly in the grip of hyperinflation, a large local department store, equivalent to Wal-Mart, has begun to accept Bitcoin for goods.
Crypto currencies: A viable alternative
More and more crypto currencies are establishing themselves as a real alternative to Venezuela’s national currency Bolivar. TRAKI, a large local department store, has allegedly started to accept crypto currencies such as Bitcoin. According to a Reddit thread published by user ImVito, „884 items of school supplies and clothing“; can be bought for only $260 in Bitcoin. Allegedly, the money was donated by the Reddit community and the purchased items are distributed to needy children of the country.
„Real Adoption and Real Help“;, since the user also shared the transaction of purchase. In addition to Bitcoin, the department store also accepts Dash, Ethereum, Litecoin (LTC) and Bitcoin Cash (BCH).
The financial catastrophe in Venezuela
The country has undoubtedly failed to maintain its control over financial sovereignty with Fiat money, as the International Monetary Fund expects local inflation to reach one million percent by the end of 2018.
The pressure is increasing, however, as the country recently introduced payments for passports via the state-implemented crypto currency Petro. In the midst of the financial crisis, however, one trend is clearly discernible: peer-to-peer crypto-currency trading is rising rapidly as government issued currencies fail.
We have already reported that the trading volume in November exceeded all previous highs. Only a few months earlier another Reddit user told his story of how he managed to provide an entire community with NANO donations. At the time, nano was $2. 71 a coin:
0. 5 Nano is almost a whole month’s salary in my country. It’s more than I earned last month.
In addition, the country’s oldest newspaper – El Impulso – has publicly recommended selling cars for Bitcoin to protect their money from inflation. The article stressed that users do not need foreign accounts and do not need to hold large amounts of other currencies in cash when using Bitcoin.