Emerging Technologies

This country could soon make Bitcoin its official currency

A Bitcoin (virtual currency) paper wallet with QR codes and coins are seen in an illustration picture taken at La Maison du Bitcoin in Paris July 11, 2014. French police dismantled an illegal Bitcoin exchange and seized 388 virtual currency units worth some 200,000 euros ($272,800) in the first such operation in Europe a public prosecutor said on Monday.   REUTERS/Benoit Tessier (FRANCE - Tags: BUSINESS) - PM1EA7B1GZZ01

“We may well be witnessing the first ‘Bitcoinization’ of a sovereign state.” Image: REUTERS/Benoit Tessier

Kyree Leary
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Emerging Technologies

From Bolivars to Bitcoins

In order to deal with ever-growing issues with hyperinflation, the country of Venezuela may soon decide to adopt a new currency: Bitcoin.

As explained by CoinTelegraph, Bitcoin has been the subject of a massive amount of mining and purchasing over the last few months, leading to a number of rumors regarding the country’s desire to incorporate it into their financial structure.

According to Daniel Osorio, from Andean Capital Advisors, Venezuela may be on the verge of forgoing their Bolivar currency. During an interview last week, he told CNBC“we may well be witnessing the first ‘Bitcoinization’ of a sovereign state.”

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Osorio went on to explain that Venezuela is more than a week behind on a substantial bond interest payment. At present, it doesn’t have the money to address it or manage the economy. A simple lunch can now cost up to 200,000 Bolivars ($8-$10) prompting people to resort to using Bitcoin or money wires of other foreign currency. Bitcoin is appealing because it’s independent of the black market and tied to a fixed exchange platform, making it difficult to exploit.

First in Line

In August, Venezuela was listed as the top country with a failing currency ahead of Colombia and Argentina, with all ten countries listed expected to turn to Bitcoin or other cryptocurrencies in the near future.

The “bitcoinization” of Venezuela hasn’t happened, despite what many would like to say, so we’ll have to wait to see what actually becomes of the situation. If it does completely shift, however, it could be used as another selling point to get people to adopt the biggest crypto out there.

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