While around the world banks are closing the accounts of bitcoin exchanges, something unusual happened today in Venezuela. The manager of one of the 5 largest Venezuelan banks got in touch with SurBitcoin and offered to OPEN an account for us. Although we were straight forward and told her right away that we are a bitcion exchange she said that it wouldn’t be a problem as long as we followed their terms of service.
SurBitcoin already has an account with Banco Mercantil which had been relatively easy to open. We had carefully explained what Bitcoin was and how SurBitcoin worked, so that in the end the manager we had spoken to not only registered at SurBitcoin herself, but even recommened it to several of her friends.
The reason these Venezuelan banks are not afraid of bitcoin is simple: In Venezuela, for any bank transfer between a business account and a regular account, the business has to submit the customer’s data, including their tax id. The bank then associates the client’s bank account with the business’ bank account, which takes 48 hours. Only then is the money transferred. From then on the transfers between the business and client are instantaneous. This can also be done if the business and client have accounts with different banks, although in that case it takes one day longer.
Additionally, banks feel at ease knowing that SurBitcoin doesn’t offer cash withdrawals. Bitcoin is not illegal in Venezuela and there is a high demand for them from the people.
The Venezuelan situation: It’s almost impossible to send or receive money using the banking system. The average person has to use intermediaries and scams are very common. The demand for dollars is so big that people buy any product they can get their hands on, contraband it and sell it for dollars. That causes a suffocating shortage of almost any product and takes a great toll on the average Venezuelan, especially those who are less well off. There are even cities at the border that are out of gas. That’s because to fill up your car’s tank in Venezuela only costs about 13 US cents.
The dollar’s parallel exchange rate is strongly affected by how hard it is to get your hands on dollars in Venezuela. Every dollar that enters Venezuela is controlled by the government. They even trained police dogs to stiff out the scent of dollars in luggage or mail.
How could Bitcoin save Venezuela? First of all, there is a vast shortage of bitcoins in Venezuela. That’s because Venezuelas who live abroad aren’t yet familiar with the advantages of using bitcoins for send money home to their families. Once they get aquainted with it they will likely prefer it over any of the alternatives, because they will be able to save 20% on the exchange rate compared to using the usual intermediaries.
Venezuelans won’t need to contraband products that are subsidized by the government in order to get dollars. If Bitcoin becomes mainstream there, they will be able to simply buy bitcoins and sell those for dollars and avoid the parallel dollar market.
Finally, I doubt that the government with take action against bitcoin when it sees all the advantages it can bring to the Venezuelan economy, especially the reduction of the contraband of subsidized products. It will also be able to help thousands of poor people who don’t have access to banking services, especially those who have no way to protect themselves from the growing inflation.
How can you help Venezuela?
1 - Tell every Venezuelan you know, who is living in your country, about the advantages of using bitcoin to send money back home.
2 - Help us make the market in Venezuela. Even if you have no interest in buying Bolivares, any quantity that you buy or sell there will help. Unfortunately the demand for Bitcoins there is so big that bitcoin’s price is currently higher than the equivalent amount of dollars on the parallel market. The market there needs about 3 or 4 Bitcoins. If you participate with just $10 in selling and buying you will help bitcoin gain momentum in Venezuela.
Submitted November 21, 2014 at 02:13AM by pinhopro http://ift.tt/1BS3h9Z