Date of Award
Bachelor of Science (B.S.) in Economics and University Honors
Cesar M. Rodriguez
Bitcoin, Electronic funds transfers, Financial institutions -- Venezuela, Blockchains (Databases), Cryptography, Venezuela -- Economic conditions -- 21st century
The purpose of this thesis seeks to examine the origins, nature, and viability of cryptocurrencies in the hyperinflated country of Venezuela. This inquiry first considers the emergence and proliferation of cryptocurrencies as alternative currencies to the Venezuelan bolivar due to breakdown of the populist economic policies of the Chavez and Maduro regimes. The economic policies taken into consideration are the government’s overreliance on oil production, a lack of private property institutions, disproportionate government spending, expansionary monetary policy, draconian price controls, and an inefficient exchange rate system which all contribute to the weakening and eventual collapse of the Venezuelan bolivar. We then shall introduce the nature and role of cryptocurrencies in Venezuela in terms of functioning as a digital, decentralized currency meeting Venezuelans’ preferences and demands for goods and services in international markets in the midst of this economic crisis. This inquiry concludes by discussing the feasibility of cryptocurrencies as alternative currencies in the hyperinflated country of Venezuela. The scholarly debate of cryptocurrency viability materializes amongst economists and academics like Ehrsam, Tucker, Surda, Patterson, Dorfman, and Beliunas particularly in terms of the cryptocurrency’s ability to meet the necessary characteristics and functions of money.
Wulf, Connor, "Bitcoins in Venezuela: Examining the Origins, Nature, and Viability of Cryptocurrencies in the Hyperinflated Country of Venezuela" (2018). University Honors Theses. Paper 518.