Digital currency is gaining more popularity all over the world, and Venezuela is one of the most recent countries where Bitcoin adoption is starting to gain traction. Although the local government is not too keen on Bitcoin in general, consumers and businesses are flocking to digital currency because it operates outside of the control of central banks. Economic experts and various media outlets have jumped on the Bitcoin bandwagon as well in recent times, creating an attractive ecosystem for digital currency going forward.

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Why Bitcoin Can Work In Venezuela

For all of the negative connotations surrounding the Bitcoin ecosystem, there are twice as many positive sides to this digital currency. Even in Venezuela, there have been various allegations regarding the involvement of Bitcoin in illegal trades on the Deep Web, and terrorist activities. However, none of this can be blamed on the digital currency itself, and the terrorism relationship has never been proven.

It does not come at a surprise to see one of the major media outlets in Venezuela post a critical piece on Bitcoin, as this has been the approach by governments and banks since day one. First, they will try to discredit Bitcoin, then they will want to learn about it, and eventually, copy it. But neither of these efforts will slow down the growth of digital currency in Venezuela by the look of things.

But at the same time, more and more people are starting to realize Bitcoin is not anonymous by any means, even though the protocol can protect user privacy up to a certain extent. This type of currency is not ideal to be used for illegal activity on the Internet or in real life, and its legitimate use cases for the greater good far outweigh any negative attention.

That being said, Bitcoin is often touted as a way to evade taxes and gain income without reporting those amounts of money to the government or local taxation service. But as it turns out, transactions can easily be tracked on the blockchain in real-time, and Bitcoin exchanges are forced to keep a file on all of their customers, including their name, address, and a copy of personal documentation.

Consumers are looking at this popular digital currency as a way to escape from the recession which has kept a stranglehold on the country’s economy for more than a year now. Moreover, the country ranked 4th from the bottom up of the countries in economic freedom back in 2014, indicating strong capital control and little improvement on the horizon.

Bitcoin allows consumers and business to escape the volatile local currency, as well as come up with a way to circumvent financial turmoil in the country. Companies can expand their business overseas, as digital currency transcends borders and is not bogged down by the archaic legacy system used by central banks all over the world.

Source: VTV

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