More than 20,000 outlets in Venezuela are reportedly beginning Bitcoin (BTC) and other crypto acceptance starting next month. This news has been made available in the hyperinflation-stricken country as part of an effort to drive crypto adoption.
Panama-based crypto-currency merchant-gateway startup Cryptobuyer announced a partnership with Venezuelan company Mega Soft, which processes payments for thousands of local businesses through its “Merchant Server” platform.
The platform will now accept, along with fiat, Bitcoin (BTC), Ether (ETH), Dash (DASH), Litecoin (LTC), Tether (USDT) and dozens of other cryptocurrencies, thereby adopting the technology at national level. Merchants paid with cryptocurrencies will have the possibility to settle them instantly to fiat or store them for future purposes.
Unstable Economies Accept Bitcoin More Than Fiat
At some point last year, the hyperinflation rate in Venezuela hit 10 million percent, making it extremely inefficient to store VES, the local sovereign currency, for more than a day. Though inflation has slowed since then, cryptocurrencies remain a much more stable exchange medium in Carcas, local reports show.
“This is real financial inclusion,” Farias said of the new partnership, arguing that for everyday shopping in countries like Venezuela, cryptocurrencies are even more convenient than foreign currencies:
“The use of cash like US Dollars is complicated by many times not having the necessary change at the time of a purchase forcing people to buy more products than they need is here where the use of cryptocurrencies is much more versatile in countries where payment systems are inefficient”
Farias noted that the solution of Cryptobuyer was already in use at “more than 400 stores” in Venezuela, including a branch of Burger King in the Caracas area of Sambil. The companies will now start activating the cryptofriendly system in thousands of businesses affiliated with “Merchant Sever”. “By June, we have to have most of them operational,” Farias said.
When asked if Petro, a controversial cryptocurrency championed by President Nicholas Maduro, is supported by the new system, the Cryptobuyer CEO replied that they have not contemplated that so far.