The adoption of cryptocurrency in Venezuela, first due to hyperinflation and then due to dollarization, can play a role in the recovery of the country's economy.
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At least, so says the most outspoken economist of Venezuela on cryptocurrencies Professor Aaron Olmos, passionately defending the advantages of cryptocurrencies. Olmos previously lectured on technology for more than two years, even leading a blockchain-oriented program for IESA, the most famous business College in the country.
Existing problem
In a new interview, Olmos discussed the problems of the current economic situation, when the depreciated bolívar is used as the official currency, despite the alternatives.
In his opinion, this situation is a consequence of decades of poor management of the economy led to the crisis, when the use of the cryptocurrency accelerated with the escalation of the fall in the value of the Bolivar:
We are in a difficult situation because "good money" - dollars or cryptocurrency-is available but few and people tend to keep it rather than spend it. On the other hand, our "bad money", Bolivar, is used by law.
In addition, the economist pointed to the fact that cash in high denominations is limited, while promissory notes in low denominations without the right to purchase are issued by the Central Bank.
Crypto as a solution
Nevertheless, Olmos believes that in the midst of this crisis, the cryptocurrency can help shape the decision, in part because the adoption is "already happening."
Along with the resumption of production and the creation of new sources of investment, a response to the country's economic problems could be the introduction of a double-treatment system similar to that used in Brazil to overcome its rampant inflation in the 1990s.
Thus, the cryptocurrency will bear part of the burden in trading and share the functions with Bolivar.
When asked about the possible inclusion of Petro as part of the recovery plan, the economist explicitly denies it, adding, "Petro didn't work because it has a structure based on intervention, power concentration, and enforcement."
Two visions of the same country
Of course, the outcome will depend on who will have the reins of the future of Venezuela. As Olmos says,"since January 10, we have two visions of the same country."
According to the economist, there is an economic plan for 2019-2025, which theoretically includes blockchain and cryptocurrency, "but this document was not published and no one saw."
On the other hand, it is not clear what position will be taken, as the local administration, which is headed by the Chairman of the National Assembly. Juan Guido, did not Express further views on bitcoin in the context of their plans to rebuild the economy of Venezuela.
Link - https://altstake.io/news/smoghet-li-kripto-spasti-ekonomiku-venesuely