Venezuelan Crypto Adoption Skyrockets Amid Banking Shutdown

Venezuelan President Nicolas Maduro Won’t Give on Petro Anytime Soon

Venezuela has recently experienced an incredible surge of peer-to-peer (P2P) Bitcoin (BTC) trading across the nation. This happened due to the country’s banks going into shutdown thanks to a nationwide quarantine enacted to try and contain the spread of the coronavirus.

Trying To Keep Chaos In Check

On the 17th of March, 2020, Nicolas Maduro, the President of Venezuela, enacted a country-wide quarantine in order to try and hold the spread of COVID-19.

As it stands now, only 33 cases have been confirmed in the country, with the administration holding out hopes that these emergency measures, though extreme, will help the country’s health system avoid being overwhelmed by a rapid increase in infections.

As it stands now, the national banking system of Venezuela has been officially halted for an indefinite amount of time, being the most significant measure in the sudden quarantine. This, in turn, sparked a massive increase in P2P crypto trading across the country. Localbitcoins, after a three-week skid in weekly volumes, experienced an enormous amount of trading between Bitcoin and the Venezuelan Bolivar. As it stands now, the trading volumes between the Bolivar and BTC have climbed above the $3.4 million mark, having done so for the past two weeks.

Bitcoin Trading Soars in Venezuela As Banks Shut Down Due to Coronavirus

Widespread Adoption Of Crypto

The consequences of the coronavirus within South America seems to be wide scale adoption of the crypto industry. LocalBitcoins had its volumes jump over more than 30% within Peru, and another 15% rise happened within Columbia over the past week. In recent times, both countries have recently closed their borders as the virus spreads within the continent.

COVID-19 Stopping Spread Of Petro

With the COVID-19 pandemic wreaking havoc across the world with the sheer amount of fear, uncertainty, and doubt (FUD), it seems that even Venezuela is feeling it. The country has started to calm down with trying to force the adoption of its state-owned cryptocurrency, the Petro.

The last major push that Maduro has made to drive the Petro’s usage appeared to have taken place in January of this year. The president had announced the launch of a casino that uses the Petro and is claimed that the profits of this casino would be donated to health and education programs across the country. An interesting way to delegate funding, no matter how you look at it. The casino itself was launched a week after Maduro proclaimed all sales of airline fuel for international flights are now mandated to be in Petro, as well.

Top brokers for buying and trading cryptocurrencies

  • Platform
  • Features
  • Rating
  • Visit Site
  • Excellent choice for U.S. customers
  • Paypal accepted
  • CySEC & FCA regulated
  • Buy 12+ cryptocurrencies

eToro Reviews

    eToro Reviews your account
    Hide eToro Reviews
    • Best broker for non-US countries
    • Established stock-exchange listed company
    • Trade crypto CFDs, forex and stocks
    • No withdrawal or deposit fees and low spreads

    Plus500 Reviews

      Plus500 Reviews your account
      Hide Plus500 Reviews
      Remember, all trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.

      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.

      Leave a Reply

      Your email address will not be published. Required fields are marked *