Lawmakers in Venezuela have launched a cryptocurrency remittance service called Patria.
The platform allows people from anywhere in the world to send Bitcoin and Litecoin to Venezuelan citizens.
The service was launched by the country’s main crypto-asset regulator Sunacrip (the Superintendency of Crypto-assets and Related Activities).
Under the terms and conditions, anyone receiving funds must be of legal age and live in Venezuela.
In December 2017, the government announced the creation of a state-backed cryptocurrency, the Petro.
The cryptocurrency can be acquired using fiat currencies as well as Bitcoin and Ethereum.
In August, Venezuela replaced the old Bolivar Fuerte currency with the Bolivar Soberano (Sovereign Bolivar), which is linked to the Petro coin’s value.
The currency, which is backed by Venezuela’s oil and mineral reserves, has been described as a way of circumventing US sanctions and accessing international financing.
Sanction dodge
Inflation-ravaged South American countries such as Venezuela are seeing Bitcoin trading volumes surge as more and more people adopt cryptocurrency.
In Venezuela, a lot of the increased usage of cryptocurrencies can be credited to the financial crisis the country is currently battling through.
At the moment, Venezuela is experiencing the highest ever recorded level of hyperinflation.
The political situation is volatile. President Nicolás Maduro, derided as a corrupt autocrat, is struggling to maintain control and is being openly challenged by opposition leader Juan Guaidó.
The country’s official currency (the Bolivar) is now almost worthless. This has led to the use of crypto as a substitute for many Venezuelans.
Interested in learning more about Venezuela and Bitcoin? You can discover more about Venezuelan gold or Airdrop Venezuela trying to raise $1 million to aid those in need on Coin Rivet.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.