Venezuela is a nation that is relying completely on cryptocurrencies like Bitcoin after the nation was struck by hyperinflation, which had adversely affected the nation’s economy. And the reason why Venezuelan people are using Bitcoin and Ethereum as an exchange is these cryptocurrencies are immune to inflation. Many Venezuelans have taken to bitcoin mining in a desperate attempt to earn some money. Bitcoin mining involves executing computations that are complex in nature and recording them in the blockchain, a distributed digital ledger. For the bitcoin mining work that they do, they are compensated using bitcoins.
Virtual currencies have become a necessity for transactions that are related to buying and selling goods and services. Initially, the nation’s leading bitcoin exchange was SurBitcoin but after the economy of the nation went down and Banesco bank shut down, the operations for the bitcoin exchange to be temporarily discontinued.
How are Cryptocurrencies Regulated In Venezuela
The regulations and legality of bitcoins and other cryptocurrencies in Venezuela have always been uncertain. But after realizing that the economy of Venezuela is falling apart, the Venezuelan government realized that it is high time they adopted the blockchain technology and they are now actively involved in creating an ideal legal framework for regulating bitcoin and other cryptocurrencies. MonkeyCoin is the first virtual currency to get an official approval from the Venezuelan government to facilitate bitcoin exchanges.
MonkeyCoin is the new bitcoin exchange that is gaining popularity in Venezuela. Sudeban, the country’s banking regulator is in charge of regulating MonkeyCoin. This bitcoin exchange is also strictly adhering to authorities like AML (Anti-Money Laundering) and KYC (Know-Your-Customers).
The blockchain technology that MonkeyCoin uses to record all the transactions made using bitcoin exchange is called Distributed Shared Orderbook (DSO). This ledger is a global network where all the cryptocurrency exchanges are recorded and it offers complete privacy and security to bitcoin users. This order book also makes it easy for users in the bitcoin network to buy and sell virtual currencies with other bitcoin users in the network.
MonkeyCoin’s digital wallet have multi-signature and cold storage feature for storing the user’s funds in the wallet. This gives the users complete control of the bitcoins in their wallet while offering them with the highest level of safety. All these features have been provided by draglet, which is a white-label software.
With the unfavorable financial conditions in the country and negative bitcoin mining related experiences in the past, MonkeyCoin seems to be the most preferred and ideal cryptocurrency that can change the way the Venezuelan government perceives bitcoin and other cryptocurrency exchange. MonkeyCoin is also the first step taken by the Venezuelan government towards creating a legal framework and changing the nation’s economy and bring about positive economic growth in Venezuela while offering a secure way for bitcoin mining in the country.