At a press conference the Vice President of Venezuela, Delcy RodrĂguez announced that since Thursday, September 30 at 08:00 hours until Friday is October 1 at 06:00 local time, the service will be gradually restored as a result of the monetary reconversion that will take place.
On this occasion, 6 zeros are removed from the national currency to facilitate the operation of the monetary cone, as indicated by the government official at a press conference with national and international media.
Venezuela has been one of the Latin American countries that has adopted crypto the most in recent years. Distrust and inflation have made the Caribbean country a place where people take advantage of cryptocurrencies.
With the temporary paralysis of the system banking, cryptocurrencies and other means of payment electronics are going to be the next protagonists in daily transactions. Currently many stores in Venezuela accept Ethereum, Bitcoin and Dash as means of payment.
Besides these coins, Venezuela has the so-called Petro, which has been used as an exchange cryptocurrency for some time now.
All this paralysis of the national banking system, takes place since the migration of the current systems with six zeros, which will have to be adapted for the new system without the six zeros and this process will theoretically take a little more than a day.
Chainalysis has issued a report in the month of August regarding the adoption of cryptocurrencies in the world, and it is Venezuela that occupies the seventh place in the ranking taken from 154 countries. Which is not at all surprising, the shortage of banknotes in circulation has forced Venezuelans to use alternative means of electronic payments quoted in Dollars.
In the same list published by Chainalysis, it can be seen that Venezuela ranks sixth in the countries with the highest volume of exchanges peer to peer the between pairs, which is the most used in Venezuela daily. According to this report, Venezuela becomes the first country in Latin America with the highest use of cryptocurrencies, only followed by Argentina and later Colombia.
Source: Chainalysis
In short, the multiple failures in the banking systems, the hyper inflation that the South American country is going through have forced citizens to turn to alternative forms of payment.
But the use of cryptocurrencies is not limited to a simple payment method, the truth is that in Venezuela many of the young people have their time dedicated to mining, and to playing various metaverses such as Axie Infinity to mention some of them.
Finally, This monetary reconversion announced by the Vice President of Venezuela, causing a paralysis of the banking system for an entire business day, leads once again to many more people turning to cryptocurrencies, and this time the big difference is in sight; When the system is managed or controlled by a government, these situations can be repeated, which is totally different from the decentralized cryptographic system since the latter is not controlled by a central entity nor is it at the disposal of a president.
Keep reading: