On the stage of the world economy today, Venezuela, a South American country, is gradually becoming a focus of attention. The role of waste paper dollars and cryptocurrencies as legal tender has gradually become prominent and has become the main medium of exchange. This phenomenon has not only attracted widespread attention from the international community, but also triggered profound thinking about the financial system and monetary system on a global scale. This article will explore the rise of waste paper dollars and cryptocurrencies in Venezuela from multiple perspectives, revealing the economic phenomena and social impacts behind them.

Venezuela's monetary system has always attracted much attention, especially in recent years, waste paper dollars and cryptocurrencies have gradually become the main medium of exchange. Waste paper dollars refer to unofficial transactions of US dollars on the black market. Due to severe domestic inflation in Venezuela, the value of the official currency has depreciated rapidly, and people are more willing to use US dollars for transactions. This phenomenon also reflects the decline in the trust in Venezuela's own currency. People are more inclined to convert assets into US dollars to preserve value, making waste paper dollars widely used in daily transactions.

As famous as waste paper dollars, there is also the rise of cryptocurrencies in Venezuela. As an emerging form of digital currency, cryptocurrency has gradually gained popularity due to its decentralization, anonymity and convenience of cross-border transactions. In Venezuela, due to the government's relatively loose control over cryptocurrencies, coupled with the influence of factors such as inflation and financial crisis, more and more people have begun to convert their funds into cryptocurrencies as a risk-averse and investment option. This trend has caused heated discussions not only in Venezuela, but also in the international market.

In the context of the coexistence of waste paper dollars and cryptocurrencies in Venezuela, the financial system and monetary system are facing unprecedented challenges and changes. Traditional financial institutions and regulatory systems are facing a double impact from waste paper dollars and cryptocurrencies. How to balance the stability of the financial order and the promotion of economic development has become a top priority. The government and relevant departments need to strengthen supervision and system construction to ensure the stability and security of the financial system, while also promoting innovation in financial technology and embracing the arrival of the digital currency era.

In addition to the impact in the financial field, the rise of waste paper dollars and cryptocurrencies has also triggered widespread discussion and reflection at the social level. People have begun to re-examine the nature and function of currency and think about the rationality and sustainability of the traditional monetary system in the digital age. The emergence of waste paper dollars and cryptocurrencies has not only changed people's payment habits and investment concepts, but also challenged the traditional financial order and monetary concepts, prompting people to rethink the definition of currency and future development direction.

In general, the rise of Venezuela's waste paper dollar and cryptocurrency is not only a microcosm of the transformation of a country's monetary system, but also a microcosm of global financial development. In this ever-changing era, people need to maintain an open mind and an inclusive attitude, actively adapt to emerging financial forms and monetary models, and jointly explore new frontiers in the era of digital currency. Venezuela's experience and lessons will provide valuable reference and inspiration for other countries around the world, leading the financial system and monetary system to develop in a more fair, efficient and innovative direction. With the continued development of waste paper dollars and cryptocurrencies, Venezuela will usher in a more vibrant and opportunity-filled future.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Venezuela has been suffering from inflation as the purchasing power of the country's sovereign currency, the bolivar, has become almost worthless. In the past few weeks, several major cities in Venezuela have suffered power outages, sometimes rendering credit card readers useless. In addition, the country's citizens rely on remittances from overseas, and last month Venezuela's economy was basically "dollarized" as more than 54% of goods sold were settled in US dollars.

For many years, Venezuela has been dealing with one of the worst economic and political crises in modern history. Corrupt government and failed central planning have destroyed Venezuela's economy, causing food and medicine shortages, nationwide power outages, and millions of Venezuelans have fallen into poverty. People say that international remittances from friends and relatives have been a lifeline for most residents.

Statistics show that the overall inflation rate has increased by 53,798,500% since 2016, and the country's legal currency, the bolivar, now has almost no purchasing power. As a result, Venezuelans no longer use the bolivar, but instead resort to other payment channels, such as barter and trading in precious metals, US dollars, and many are also using cryptocurrencies. The dollar is so popular in Venezuela that it was used to settle more than the bolivar last month.

Econoalitica, a Caracas-based research firm, revealed in October that more than 54% of sales in Venezuela were made in dollars. Asdrubal
Oliveros, director of Ecoanalitica, explained that "86% of transactions" in Venezuela's second-largest city last month were in dollars. Oliveros stressed that families who migrated elsewhere sent them money, and the country's residents survived on this money.

Now there is a segment of the population "who have access to hard currency and another segment who don't," Oliveros said. "Venezuela has become an economy dominated by transactions in dollars, and those who can't get dollars and can only get bolivars are severely limited in their ability to buy things."

Venezuela has become a 'dollarized' country, joining many other dollarized countries or regions such as Ecuador, East Timor, El Salvador, the Marshall Islands, Micronesia, Palau, Turks and Caicos Islands, British Virgin Islands and Zimbabwe. Dollarization is a macroeconomic term used to describe how the U.S. dollar replaces a national currency when the national fiat currency becomes useless as a medium of exchange.

Venezuelans are increasingly using cryptocurrencies as an alternative to barter and the use of precious metals. Roberto
Garcia runs the Bitcoin Cash House in Barquisimeto, Venezuela. It is a local BCH education center that educates Venezuelans on the benefits of cryptocurrency and job opportunities associated with the industry.

Another entrepreneur promoting cryptocurrency in Venezuela is Oscar Salas, organizer of the Bitcoin Cash meetup in Maracaibo.
Salas has been tirelessly promoting BCH adoption among businesses in the region and recently discussed his activism on episode 34 of the Bitcoin Cast show.

On October 8, Salas shared photos and video clips of him talking to more than 200 taxi drivers in Maracaibo who learned about BCH. Venezuela also has local people and organizations working together to spread valuable information about cryptocurrency.

The nonprofit Eatbch Venezuela (@eatBCH_VE) continues to show the BCH community how to use the peer-to-peer electronic cash system to provide food to Venezuelans in need. On November 7, Eatbch Venezuela wrote: "Due to technical issues, we haven't posted photos of these locations for a long time, but we are still helping those in need." In September, news.Bitcoin.com also reported that a team of researchers and activists called the Ryver Bitcoin Cash Group regularly surveyed Venezuelans. In their weekly research, Sofia Corona, community manager of the Ryver Bitcoin Cash Group, noted that most Venezuelans do not trust the bolivar as a fiat currency, so the group provides them with educational resources on the benefits of Bitcoin Cash. Finally, this week, BCH fans celebrated the fact that there are now approximately 360 merchants in Venezuela that accept Bitcoin Cash. Similar to places such as North Queensland, Australia, and Slovenia, Venezuela has more merchants accepting BCH than retailers accepting BTC. No one is sure whether Venezuela’s economy will flourish as it did decades ago before the United Socialist Party of Venezuela came to power. The oil-rich country does have proven oil reserves, but oil production is currently lower than it was 30 years ago. Worse, it is estimated that Venezuela’s inflation rate could exceed 1 trillion this year. President Maduro’s socialist regime has also introduced the Petro, a cryptocurrency that is allegedly backed by oil and gold reserves.

Local residents say that ordinary citizens do not use the Petro at all, and only corrupt government officials use it to bypass economic sanctions. The Maduro regime has also whimsically increased the price of the Petro twice, just as he has increased the minimum wage 26 times. Despite Maduro’s efforts, Venezuelan citizens are still seeking refuge in alternative payment systems such as the US dollar and digital assets.