As U.S. sanctions put pressure on the Nicolás Maduro government, including strict restrictions on the circulation of foreign exchange transactions, driving people to find a way to bypass such obstacles and economic crises, Venezuelan residents will continue to see changes. Many cryptocurrency solutions.
Venezuelan freelancers use cryptocurrency to find a way to circumvent U.S. sanctions
The Venezuelan freelance platform Venezuelan workers emerged to connect local freelancers with global employers seeking to carry out certain projects or perform specific tasks.
But the platform is the country’s first platform because all payments are made through cryptocurrencies such as Bitcoin (BTC) and Bitcoin Cash (BCH).
According to their website, the main purpose of launching the platform is to help Venezuelan freelancers cope with the ongoing economic crisis. Since a few years ago due to hyperinflation, Venezuela’s national currency, the Bolivar, has depreciated significantly.
Venezuelan workers hope to use a Venezuelan-based freelance platform to connect local freelancers with global “major companies”.
If the company wants to hire Venezuelan workers through Venezuelan workers, but they do not have BTC or BCH to arrange payment, the platform allows the exchange of other cryptocurrencies through third-party sites.
Chain analysis: Venezuela is a “model” for adopting cryptocurrency
In terms of adoption, Venezuela is one of the major players in the Latin American crypto industry. In a study published on September 8, 2020, Chainalysis described the country as an “excellent example” of adopting cryptocurrencies in emerging countries to alleviate the economic crisis. they said:
Our data shows that when Venezuela’s domestic legal currency depreciates due to inflation, Venezuelans will use cryptocurrency more, which shows that Venezuelans are turning to cryptocurrency to save their savings that they may lose.
Venezuelan freelancers also face more challenges in processing encrypted peer-to-peer (P2P) payments. Paxful announced that it will close its business in Venezuela on September 16, 2020, in order to comply with US economic sanctions against the Maduro government.
According to the sanctions of the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury, among other restrictions, U.S. citizens are prohibited from conducting business with the Venezuelan government or government-owned companies.
What do you think of a crypto-friendly freelance platform? Let us know in the comments section below.
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