The Venezuelan economist took favor of digital cryptocurrency and says that their own government-issued currency Bolivar is not good and people of the country can’t depend on Bolivar. The Bolivar currency has a yearly inflation rate of 1,700,000% and the economist said that using Bolivars is “financial suicide attempt” and that is why he has chosen cryptocurrency and Bitcoin is a term of surviving in financial markets.
The Venezuelan economist Professor Aaron Olmos was always in favor of the cryptocurrency and gave lectures about the blockchain technology to the Venezuelan public for almost two years. Venezuela is presently is thriving with the economic situation of building its economy by implying cryptocurrency because of hyperinflation first and then after that dollarization. Olmos stated that instead of cryptocurrency as an option undervalued Bolivar has always been the official currency and he blamed the bad economic management standards in the past years for the current economic crisis in the country.
Professor Olmos in an interview with Coindesk said, “We are in a complicated situation because ‘good money’ – dollars or cryptocurrency – is available, it is scarce because people tend to keep it, not spend it. On the other hand our ‘bad money’, the Bolivar, it’s the one used by law.” Presently, the Bolivar is lowered in its value.
Professor Olmos also mentions that presently the check of low denominations and which have no purchasing power are circulated by the central bank. In relations with this matter, he said, “This creates a distortion within the worth of products and companies for the reason that manufacturing worth is now primarily based in (dollars) within the inner market. Everyone is aware of it: the Bolivar is our official forex in circulation, however, the precise purposeful forex is the US greenback.” Professor Olmos is very positive about the cryptocurrency being the answer to this economic crisis and as the crypto implication is in the process, it may be a new investment creation.