Binance strikes into widespread Venezuelan greenback indices as foreign money drops 10% in per week – Bitcoin Information – Bitcoin Information
Binance, the leading P2P exchange in Venezuela, is now featured in several of the country’s popular dollar indices. The price of USDT on Binance’s P2P platform is now used to calculate the average price of the dollar with other P2P and electronic markets. The Venezuelan currency, the bolivar, lost 10% against the dollar last week as the government considers converting the currency.
Binance penetrates the dollar indices
Binance made its way into the popular dollar indices in Venezuela after it became one of the most famous crypto markets in the country. Now the average USDT price of its P2P exchange is used to get a grip on the real price of the dollar in the country through two well-known indices: enParaleloVzla and MonitorDolar. Binance P2P is the second cryptocurrency-related platform believed to be representative of the dollar price trend in the market, with the first being Localbitcoins, another P2P market.
Now Binance P2P has become a huge factor in setting the informal dollar price in the country. While Binance’s P2P trading volume is not disclosed by the company, analysts speculate that it is moving a significant portion of the dollars that travel to and from Venezuela internationally. In an interview with Diario Bitcoin, Mariangel Garcia, spokeswoman for Binance Spanish, stated that Venezuela was one of the fastest growing markets in any Latin American country in the first quarter of 2020.
The Venezuelan currency crashes by more than 10% in a week
In recent news, Venezuela’s fiat currency, the bolivar, faced a terrible week, losing more than 10% of its value against the US dollar. The bolivar traded at VES 3,318,055 per dollar on July 12, and within a few days the exchange rate rose to VES 3,665,450 on July 16. This exchange rate is calculated using several indicators from various P2P and electronic markets. This seems to indicate that the government has failed to address several factors that are still causing the exchange rate to rise.
As a result of the exchange rate, it was announced earlier this month that talks were underway to convert Venezuela’s fiat currency to make it easier for some large companies to pay taxes and salaries. Venezuela’s central bank would cut the nominal interest rate by six zeros and would have to print new banknotes. As mentioned earlier, one dollar is valued at more than 3 million bolivars, which makes calculating payrolls and taxes very difficult for a wide variety of businesses and institutions.
What do you think of Binance entering dollar computation indices in Venezuela? Let us know in the comments section below.
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