Venezuela is one of the fastest growing nations to adopt cryptocurrencies despite the recent turnaround events first due to hyperinflation and later due to dollarization.
One crypto economist from Venezuela named Aaron Olmos has talked about the same in one of his recent interview. Being a passionate advocate of the benefits of cryptocurrencies, Olmos has lectured about the technology for over two years. In addition, he has led a program called blockchain for IESA, the most prominent business college in the country.
Olmos has clearly demonstrated the Venezuelan public regarding the adoption of blockchain & cryptocurrencies through interviews, presentations, and lectures across the country.
Quite recently, Olmos presented the challenges of Venezuela’s current economic situation, where a devalued Bolivar is used as an official currency, despite alternatives. In his opinion, this situation – a consequence of decades of poor economic administration – has led to a crisis where the use of cryptocurrencies has been accelerating as the Bolivar’s decline in value sharpens.
Olmos believes cryptocurrency could help form a solution, in part, because adoption “is already happening” despite the crisis situation there.
In order to resolve country’s economic issues, they could introduce a double circulation system, similar to the one used in Brazil to overcome its rampant inflation in the 1990s, the Unit of Real Value (URV).
The cryptocurrency, in this way, would carry part of the burden in commerce and share it with the Bolivar.
“Given the conditions where we need an alternative element of trust, there’s nothing better than a cryptocurrency while an economic policy takes care of making the Bolivar regain value and recover its power,” Olmos said.
Olmos also added saying that he does not believe current laws in the Venezuelan Constitution exclude the possibility of using a cryptocurrency for payments as part of a readjustment plan.
“What should be done is to recognize its use and give it some space for development for it to work properly and temporarily,” the economist said, emphasizing the ultimate goal would be to boost the Bolivar’s value. “We could even use it in a digital form.”
Inclusion of Petro as a recovery plan was denied by the economist saying: “The Petro hasn’t worked out because it has a structure based on intervention, power concentration, and forced usage.”