Banking Shutdown Due to Hyperinflation In Venezuela
With the outbreak of the COVID 19 pandemic, every Bank of the Venezuela was shut down due to national wide Quarantine. This provided the Venezuelans with a great opportunity to venture unknown aspects of the cryptocurrency more than usual.
The quarantine period has provided the Venezuelan enough time to think about their Crypto investment and finding ways to increase their Crypto assets.
There were only 33 COVID 19 positive cases in the Venezuela when the president of the nation, Nicolas Maduro declared nationwide quarantine to slow down the widespread of the COVID pandemic.
This quick action really helped Venezuela to stop the wide spread of the COVID 19 in the nation. As of now there are only 1662 confirmed cases. Out of the given confirmed cases 302 has recovered and 17 lost their life.
The quick action of the Venezuelan president really restricted the wide spread of the pandemic. But the quarantine was really too much for the Venezuelan economy to handle. And as a result the Banks were shut down.
Shut down of the Banking sectors in Venezuela
With the wide spread of the COVID 19, Venezuela take a decision of declaring quarantine on march 17, 2020. This made all the industrial sectors of the Venezuela shut down. Even the banking sectors were affected by the quarantine. And eventually it was also shut down.
This quarantine helped the Venezuelan to spend more time thinking if ways to increase their Cryptocurrency trade. In the past couple of months, Venezuelans have increased their Crypto trading.
With a study it has been found that within the 3 weeks of quarantine period, the Venezuelans have done more than $3.4 million of trade between Cryptocurrencies and Bolivars.
It seems that the quarantine period have acted like a catalyst for the South American Continent. Within the quarantine period, the adoption of the Cryptocurrency trade market has increase in this continent. The result was so astonishing that the super power nation was also keeping an eye on their trading movement.
How Banking shut down catalyzed Venezuelan’s Cryptocurrency adoption
After declaring the quarantine, all the banks were shut down. This created a demand of banking services in the Venezuela. People were looking for substitutes. This is where they were introduced by the Cryptocurrency account. Cryptocurrency accounts are similar to that of bank accounts. Hence, Venezuelans started storing all their Bolivars in the form of Cryptocurrencies.
Venezuelan interest grew in the Cryptocurrency and they started their free time in investing Cryptpocurrency. These circumstances lead Venezuela adapting to the use of Cryptocurrency.
The results show that over the past three weeks the volume of the localbitcoins jumped by 30% in Peru and 15% in Columbia. The most used platform during this quarantine phase was bitcoin cycle.
COVID 19 Pandemic over shadows Petro
Petro is a Cryptocurrency that was launched by the Venezuelan government. This Cryptocurrency was launched in the 2017, after seeing the price evaluation of bitcoin. 2017 was the year when the price evaluation of the Bitcoin reached its peak value of close to $20000. This event made the Venezuela to launch its own Cryptocurtrency, in hope improving their nation’s economy. Petro is a centralized Cryptocurrency that is powered by the oil reserve of the Venezuela.
But with the COVID 19 outbreak and declaration of the quarantine, affected the trade on the oil reserve. This made the price of the petro faltered. To make the petro stand in the market, Venezuelan president stared initiative where he announced Petro powered Casinos. He also added that the profit made by the Casino will be used for the health and education programs.
Venezuela has really taken advantage of this nationwide quarantine period and has come closer to understanding the full potential of the Cryptocurrency. After the quarantine period ends, we will soon be able to see just how well they have understood the way cryptocurrency work.