Venezuela has ordered severe limits on bank withdrawals less than a week after India made changes to its cash currency precipitating long lines at the nation’s ATMs. Both of these government actions have led to an increase in interest on the digital currency, Bitcoin.
Venezuela’s Superintendency of Banking Sector Institutions (Sudeban) forbade public and private banks from dispensing more than US $5.26 per day cash from branches or ATMs.
Sudeban allows a maximum of four transactions allowing the withdrawal of up to approximately US $5. In the midst of crisis, Venezuela’s inflation has reached more than 750 percent and is expected to go much higher. Cash is a necessity because of the inflation, but now the cash cannot be withdrawn, and Venezuelans suspect the government is trying to avert a bankruptcy. The Central Bank of Venezuela promised new banknotes beginning December 15, but has imitated this will be a slow process.
The currency crisis has led to Bitcoiners in the country to start discussing the virtues of a bolivar that can be exchanged in a decentralized