Interesting insights how Bitcoin and cryptocurrencies are helping with providing freedom in Venezuela. People are able to save money avoiding government taxes and unnecessary regulation.
In Caracas, capital of Venezuela, recently, a bandit broke into a zoo to eat a horse.
One of the causes of the food crisis is the government’s exchange rate policy that much more expensive to buy imported goods.
However, Venezuelans are circumventing these restrictions through digital currency Bitcoin.
And there are similar examples in neighboring countries.
The Bitcoin is becoming very popular in Latin America because it gives individuals a way around protectionism and other destructive government policies.
Three ways in which Bitcoin is promoting economic freedom in Latin America.
The Bitcoin is an alternative to the use of government money and, in fact, something revolutionary.
Rodrigo Souza is a businessman who lives in the United States, founder of Bitcoin, which is an online marketplace where Venezuelans buy and sell bolivars in exchange for bitcoins.
Last year alone, the turnover of Surbitcoin tripled as more and more Venezuelans began using bitcoin.
A bitcoin advantage is that, while the government regulates and restricts the flow of money internal and external through the banking system, The bitcoin prevents banks to be a fully digital currency.
And it’s not only the government – no one controls the bitcoin.
Today, a growing number of Venezuelans are using your bitcoins to buy food e-commerce sites like Amazon and Walmart.
These packages are directed to one of several courier services based in Miami and then shipped to Venezuela, which are delivered in the homes of people arrested in that nation hungry.
When the iPhone 6 was released in Brazil in 2014, the price was so absurdly high that became a laughingstock one of the late night talk shows most popular in the country.
The explanation for this high price It is that the country charges an import tariff on goods imported which reaches 60%.
The idea of the Brazilian government is as follows: “Ok, let’s impose high taxes Apple, forcing her to come here, in order to generate jobs in Brazil.
” In fact, it condemns Brazil.
But the money is collected by the traditional financial system.
Today, a growing number of Brazilians are avoiding the import tax to buy products like iPhones with Bitcoin.
Thus, the government simply can not know as Brazilians are spending on the purchase of imported goods.
The bitcoin is also an effective tool to avoid tax the investment of capital into Brazil.
In fact, we work with some venture capital funds, some private individuals.
They are investors in Brazil and want to bring money back here.
Thiago Ceaser is the founder and CEO of Bit.
The company helps customers avoid a rate of 27.
5% of PIT to join capital in the country via bitcoin.
However, circumvent protective tariffs is not just for investors.
Brazilian midfielder traveling abroad pays 6:38% (IOF) every time they pass your credit card or debit card.
Many realized that to use a bitcoin credit card Xapo or ADV Cash, they can avoid taxes altogether.
It is not illegal, because there are no regulations covering this topic in Brazil.
There is a gap, and when there is a gap saying it is not illegal, then it’s not illegal, right? Starting a new business in Brazil It takes 14x longer than in the United States.
In the Index of Economic Freedom 2016, the country is in bad 122nd place.
Brazilian entrepreneur Edilson Osorio believes that bitcoin can help solve this problem – not the money itself, but the database in which the transitions are recorded the Bitcoin network.
This database is called blockchain, and is a computer file with a single architecture, that is, it can never be altered or tampered Recording information in blockchain is like carving a message in the wet cement.
This incorruptible file, enthusiasts believe, It has the potential to fill the void left by weak government institutions in Latin America.
In Honduras, a company proposed to transfer property titles, Before the form of old volumes of paper blockchain, where the country’s citizens can verify that they were not secretly altered.
Osorio has a similar view of how blockchain can provide such confidence which sometimes lack the governmental institutions in Brazil.
Specifically, your idea is to use the blockchain to change the notarial industry in Brazil.
which is a great source of bureaucracy.
The government requires Brazilians to go through the registry to verify the authenticity of birth certificates, contracts and car documents and all kinds of trade negotiations.
The Osório company offers a different method of verification of documents that eliminates this hassle.
Call OriginalMy, the site he built allows customers to recording encrypted versions important documents in blockchain.
So at any point in the future, it is possible to prove the authenticity of a document to compare it with the original.
And the hope is that this new system to restore confidence improve the country’s business environment.
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