The political tension in Venezuela has affected local cryptocurrency adoption. While there are roadblocks, many crypto-advocating projects continue to thrive in the country. News.Bitcoin.com takes a deep look at the current situation in Venezuela, crypto adoption efforts and how the recent political crisis affects them.
Political Turmoil and Economy in Freefall
Cryptocurrency adoption in Venezuela has been affected by the recent political unrest following mass protests organized by Juan Guaido, president of the opposition-run National Assembly, calling for the military to help him end Nicolas Maduro’s reign. With the support of more than 50 countries including the U.S., Guaido declared himself acting president of Venezuela while Maduro insists he has been re-elected to a second six-year term. The incumbent still has the support of a number of countries including Russia and China.
During the years-long freefall of their country’s economy, many Venezuelans have turned to cryptocurrencies. Venezuela’s annual inflation rate reached 1,300,000% in the 12 months to November last year, according to the opposition-controlled National Assembly.
Venezuela’s two presidents: Nicolas Maduro (left) and Juan Guaido (right).
Widespread food and medical supply shortages are now the norm, with most Venezuelans struggling to afford basic items including food and toiletries. Although Venezuela is prime for crypto adoption, there are still many challenges in the way.
Crypto Adoption Remains Strong
Seemingly a natural fit for such a failing economy, cryptocurrency adoption is progressing in Venezuela despite some roadblocks. Matt Aaron, leader of Bitcoin.com’s efforts in the country, explained how the recent political situation and ongoing power outages have affected local merchant crypto adoption.
Citing the political unrest, the frequent and lengthy blackouts,