As per the recent reports, the banking association chief from Brazil has commented about the cryptocurrency adoption rate in Venezuela. He also explained why the Venezuelan Government has resorted to this option and how much it is benefitting from it.
He stated that the Venezuelan people are using cryptocurrencies as a means of moving money out of the country. The Government of the United States has put too many sanctions on the country in recent years. Even the majority of the financial institutions, no matter the channel, have disconnected themselves from Venezuela.
Even with so many crises and problems at hand, the people of Venezuela have finally found a way around these obstacles. The country has now started shifting into cryptocurrency banking because Venezuela is no longer part of the international banking system due to the sanctions.
Murilo Portugal, who is the head of the Brazilian Federation of Banks talked at length about the Venezuelan adoption of cryptocurrencies. He stated that the people and businesses of Venezuela are now using Bitcoin (BTC) and altcoins to move money out of the country.
Portugal referred to the moving of value through the cryptocurrencies as ‘vehicle currencies’. He also stated that in order to carry out these activities, the Venezuelan users are utilizing remittance and crypto platforms that are informal.
Portugal is a very prominent and influential personality when it comes to banking and investments. In past Portugal served as the deputy managing director at the International Monetary Fund. In addition to this, Portugal also worked at the World Bank as the Executive Director.
The chief of the Brazilian banking association also stated that Venezuelans are dealing with cryptocurrencies very smartly. He stated that they are not going for any cryptocurrency opportunities at the moment. Instead, they are holding onto Bitcoin (BTC) and altcoins for a more favorable situation and time.
He stated that the Venezuelans have been observed holding the Bitcoin (BTC) until it grows in price. Then, the Venezuelans send the Bitcoin (BTC) abroad and convert them to cryptocurrencies that are linked with major currencies.
The chief banker also stated that the Venezuelan Government tried launching its oil-backed cryptocurrency asset. The Venezuelan Government dubbed the asset as petro (PTR), but the asset did not manage to gain recognition or adoption.
Portugal also shared his views about the major cryptocurrency assets stating that Ethereum (ETH) and Bitcoin (BTC) are not real currencies.
He stated that the cryptocurrency assets are extremely volatile in nature and every second, there is a rise/fall in their prices. This is the reason why cryptocurrency assets are considered unstable and therefore, cannot be considered as payment methods. He stated that the cryptocurrencies are a poor store of value, which is why they are a poor unit for accountancy.