The peer-to-peer Bitcoin (BTC) transaction increased sharply in Venezuela after the country closed banks to avoid the spread of corona virus.
On March 17, Venezuelan President Nicolas Maduro issued quarantine measures nationwide to prevent the spread of Covid-19. With only 33 confirmed cases of the virus so far, the government hopes that emergency measures will help prevent the domestic health system from overloading due to the rapid increase in the number of cases.
Venezuela's banking industry closed indefinitely
Venezuela's national banking system has been suspended. "unlimited"As part of the surprise quarantine plan, this has caused the volume of cryptocurrency P2P transactions to soar. After 3 weekly declines in volume, trading between BTC and bolivars on Localbitcoins has recovered back to over $ 3.4 million in the past two weeks.
The economic consequences of the corona virus seem to be driving the adoption of cryptocurrencies across the continent of South America, with volumes on Localbitcoins soaring more than 30% in Peru and nearly 15% in Colombia in the past week. Both Peru and Colombia have closed the border in recent days.
The coronavirus epidemic overshadowed Petro initiatives
The threat of COVID-19 appears to have eclipsed efforts to adopt the national cryptocurrency backed by Petro oil.
Maduro's last initiatives to promote the use of the Petro began in January when the president announced the launch of a casino provided by the Petro from which profits would be financed for educational programs. and medical. The casino was launched about a week after Maduro ordered that all airline fuel sales for international flights had to be paid for by the Petro.
Irrespective of Maduro's efforts to stimulate the application of the national coin, Venezuelans are still not very keen on this currency. Orders sold on Localbitcoins show that Venezuelans are selling the Petro for half its fixed value of $ 60.
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According to CoinTelegraph
Translated by ToiYeuBitcoin