Venezuela Limits Daily Withdrawals to $5; Market For Bitcoin?

BitsPlan

Setting upon the same path as India, Venezuela has announced a major capital control regime. Starting on December 1, Venezuelans are only allowed to withdraw US$5 a day from financial service providers, banks, and ATMs.

For years, Venezuela has been in the midst of a serious financial crisis. Low-income neighborhoods are protesting against the authorities, black market trades are being heavily regulated and even the wealthy population of the country struggle to obtain other reserve currencies and safe haven assets like the US dollars and gold.

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A dire financial situation has lead to significant food shortages in Venezuela.

As the economy worsened and Venezuela began to see complete financial turmoil, both the central bank and commercial banks sought out for methods of either delaying or significantly restricting the amount of money an individual can withdraw.

Ultimately, the Venezuelan government passed a legislation to limit daily withdrawals to $5, in a desperate attempt to avoid another bankruptcy.

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Read more ... source: TheBitcoinNews

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