Can Krypto save the economy of Venezuela?

[Paha87]

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.

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

[Danezu]

I think the situation in Venezuela is a little more complicated. It's normal that people have more confidence in crypto than in national currency, but the economy can only be saved by a more capable government than it is now.

[toheed2x]

Venezuela Gold storage in Britain maybe seized so only option remaining bitcoin who have they only survived quit sad happening out there. 

[this-website-is-bitch]

The cryptos can not save them.

[Fenix]

In my opinion, the situation in Venezuela is now so complicated that the cryptocurrency will not save this country. There is no electricity in the country, mass looting began. First you need to deal with the political crisis, there should be one in this country, not two presidents. Apparently, Maduro should already leave this post. However, on the other hand, he enjoys the direct support of Russia, which invested more than ten billion dollars in the Maduro regime and, therefore, it is protected by 400 mercenaries from Russia. To what all this will lead, we will soon see.

[fredrick4u]

The economic situation in Venezuela is more than what people are seeing at the moment and cryptocurrencies cannot save the situation at the moment and that is the reality on the ground.

[Altcoins_letsgetit]

The situation there is more complicated, it won't save the country anyway

[comer]

can't believe it could save but rather, can help to lift a little by implementing strict regulation and collect taxes from the crypto space could somehow increase the economy. Crypto space is just very little it could not save a country anyway.