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Bitcoin could soon be Venezuela’s official currency

Bitcoin could soon be Venezuela’s official currency
Venezuela is in a major crisis and doesn't have the money needed to manage the economy

Mubasher: Venezuela could soon decide to adopt the Bitcoin as its new currency in order to deal with its ever-growing issues with hyperinflation, according to a recent report by the World Economic Forum (WEF).

Financial expert Daniel Osorio of Andean Capital Advisors told CNBC in an interview last week that Venezuela may be on the verge of forgoing its local currency, the bolivar.

“We may well be witnessing the first ‘Bitcoinisation’ of a sovereign state,” Osorio noted,

Venezuela is more than a week behind on a substantial bond interest payment. At present, it does not have the money to address it or manage the economy, he further explained.

A simple lunch can now cost up to 200,000 Bolivars, equivalent to around $8 to $10, prompting people to resort to using Bitcoin or money wires of other foreign currency.

Bitcoin is appealing because it is independent of the black market and tied to a fixed exchange platform, making it difficult to exploit, the report elaborated.