High level of inflation
On August 10, five zeros were stripped off from the country’s currency after inflation levels rose to stratospheric levels. Though the devaluation hasn’t worked as expected as a report states that despite the new currency just two months old, the inflation rate has reached an estimated 100%.
Alongside serving as a safeguard against the high inflationary conditions in the country, one of the key attributes for the record-breaking volumes in the BTC/VES pair is the devaluation of the currency a few weeks ago.
On one hand, the national currency has been devalued by 95% and renamed as the sovereign bolivar. On the other, earlier in the year, the Venezuelan president Nicolas Maduro introduced the Petro cryptocurrency. Though all the hopes pegged on the petrol pegged Petro cryptocurrency has received a major lash back as Petro was rejected by most.