The $3 minimum wage set in Venezuela has locals trading cryptocurrencies instead.
With a living wage as demeaning as $3, many locals seek better ways of making a living. This is similar to many other nations like Nigeria. With a mediocre living wage of N30,000 wealth is not assured through fiat and most standard day-to-day occupations.
Major Updates
- Venezuelan President Nicolas Madurai announces a $3 living wage.
- Local Venezuelan crypto freelance site Venezuelaworkers.com has been booming.
- The Venezuelan economy has been suffering since 2013.
- Venezuelans flock onto Binance P2P.
Recently, the president of Venezuela, Nicolas Maduro, has just approved a new minimum wage of $3. This is an inappropriate amount for a country passing through an economic meltdown since 2013.
For this reason, locals have resorted to various lengths to make higher income; this is where cryptocurrencies come to play.
A majority of Venezuelans have been flocking onto crypto exchanges, most commonly, Binance and LocalBitcoins. They now make up thousands of the exchanges’ overall user population.
Regarding the Venezuelan economic crisis, it is majorly a result of poor governance and mismanagement of national funds. This is coupled with the weakened buying powers of citizens due to applied penalties and sanctions by the US government.
The state of the average Venezuelan family on a $3 salary is below living standard as procuring everyday goods is highly difficult.
With the inflation rate currently undecipherable, it was deduced by the CENDA that for an average working family, a basket of goods would cost around $229.92. This figure was attained as of March 2021.
The meager pay has made many locals seek international jobs by which payments and other transactions are through cryptocurrencies. This has advanced a lot amongst Venezuelans so much that it inspired the creation of thelocal crypto freelance site, Venezuelaworkers.com.
Since its launch last year by CEO Oscar Salas, the site has covered extensive ground in Venezuela. Currently, with about 400 employees and over 4000 workers, the site has grown massively.
Conclusion
As far as LocalBitcoin goes, Venezuelans’ numbers have dropped significantly. However, this has been compensated for on Binance. This has been so ever since the platform opened their P2P service.
Question of the Day
Do you think the local fiat, Boliver, stands a chance against cryptocurrencies?
