Venezuela Set For Mass Bitcoin Adoption As China Cuts Off Cash Flow

By October 2, 2016Bitcoin Business

The financial situation in Venezuela is very dire right now. The problems are only compounded now that China is cutting off cash transfers to the country. China has poured billions into Venezuela in recent decades, but there will be no new loans issued to the Latin American country. A positive trend for Bitcoin, which has already gained significant traction in the region. China Cuts Off The Faucet To Venezuela It was only a matter of time until the cash flow from China to Venezuela would dry up. Supporting a country in dire financial straits is very noble, but unless money is returned, it is not sustainable in the long run. Unfortunately for Venezuela , this news could not come at a worse time, as things have gone from worse to near-nightmare levels for residents and enterprises. It has to be said; China has been doing everything they can to help out Venezuela during these difficult times. Chinese state banks have loaned US$60bn to the struggling country, and there is an outstanding debt of roughly US$20bn that still needs to be settled. Unfortunately, that will not happen anytime soon, as the country has little to no money to spare right now. In most cases, these back payments are completed in the form of exporting oil. While Venezuela has been the sitting on the world’s largest oil reserves, saw its drop production t a new low since 2003. With unpaid bill from the government to service providers, the appeal to deal with the Latin American country has all but vanished. Things are looking very dire for Venezuela right now, as they can’t import or exports goods in a decent capacity right now. There is not enough revenue to buy food or medicine, while other countries� are not willing to import Venezuelan […]

Leave a Reply

All Today's Crypto News In One Place