A fourfold increase in its Bitcoin trading volume since June in Venezuela has been announced by decentralized Bitcoin exchange LocalBitcoins. Now we can see the extraordinary increase in the need for the electronic currency in the nation. In some other emerging market, we can notice the result of this sizable boost.
Based on the business, its trading volume of Bitcoin during the last 3 weeks has grown to 40 bln Venezuelan bolivars from approximately 9 billion bolivars. This increase happened despite the absence of clear cryptocurrency laws and policies in the nation.
Venezuela’s economic as well as banking systems have continuously been through hyperinflation and also the fast devaluation of the country’s national currency over the previous 12 months.
Venezuela’s digital currency crackdown
Based on local media, a substantial amount of faculty students, other professionals, and young entrepreneurs have considered virtual currency mining in an effort to produce enough income to fund the day-to-day activities of theirs and feed the families of theirs. Apart from Bitcoin, Ethereum, Zcash, and Dash are included by the various other cryptocurrencies mined.
The Venezuelan authorities, nonetheless, have released a crackdown against electronic currency mining. In a report by Jim Epstein of Reason.com, 4 Bitcoin miners have been arrested by the authorities. The article cited the statement given by federal police company Cuerpo de Investigaciones Científicas Penales y Criminalisticas (CICPC) director Douglas Rico about the arrest.
Part of the article reads:
“In a statement attached to his Instagram post, Rico said that they were running ‘more than 300′ Bitcoin mining computers and selling them in Cúcuta, a Colombian town near the Venezuelan border, which is known as a place where Venezuelans go to freely trade bolivars and dollars without abiding by the government’s strict currency controls. Rico also claimed that the miners’ actions had affected “the consumption and the stability” of electricity service in Charallave. These four individuals aren’t the first Venezuelans Bitcoin miners to get arrest.”
Nevertheless, in spite of the arrests, electronic currency mining continues to be thriving in Venezuela.