Venezuela's withdrawal limit is $5. Will the Bitcoin market explode?

On November 24, Venezuela also began to announce major capital control plans, drawing on India's experience. The Venezuelan government announced that starting from December 1, only a maximum of $5 can be withdrawn from financial service institutions, banks and ATMs every day.

Venezuela has been mired in a severe financial crisis for many years. The situation in Venezuela is extremely bad, with protests against the authorities in low-income areas. As a result, black market transactions are strictly regulated, and even wealthy people have difficulty obtaining reserve currencies and safe-haven assets such as the US dollar and gold.

Venezuela has been mired in a severe financial crisis for many years. The situation in Venezuela is extremely bad, with protests against the authorities in low-income areas. As a result, black market transactions are strictly regulated, and even wealthy people have difficulty obtaining reserve currencies and safe-haven assets such as the US dollar and gold.

As the economy worsens, Venezuela's entire financial system is in turmoil, with the central bank and local commercial banks trying to delay or even limit the amount of cash that individuals can withdraw.

Ultimately, the Venezuelan government passed a bill limiting daily withdrawals to $5, hoping that this move would prevent banks from going bankrupt again.

The Venezuelan people and their government described this move as a "financial corralito" policy. Local media El Nacional said that Venezuela's move is an extreme form of "financial corralito" that will bring about huge financial changes in the coming months.

For the foreseeable future, Venezuelans will only be allowed to withdraw 10,000 bolivar banknotes per day, equivalent to $5 to sustain their families and daily expenses. Since the legislation applies to almost all financial services institutions, platforms and networks other than banks, most, if not all, Venezuelans will be prohibited from withdrawing large amounts of cash.

For the foreseeable future, Venezuelans will only be allowed to withdraw 10,000 bolivar banknotes per day, equivalent to $5 to sustain their families and daily expenses. Since the legislation applies to almost all financial services institutions, platforms and networks other than banks, most, if not all, Venezuelans will be prohibited from withdrawing large amounts of cash.

Due to the government's crackdown on the black market and strict regulations on the US dollar, gold and other assets, it is almost impossible to obtain a valuable and reliable store of value in Venezuela.

For Venezuelans, the only option to avoid future economic and financial changes and circumvent extreme regulatory oversight is to use Bitcoin, a decentralized currency that is not subject to excessive government monopoly.

Despite the lack of proper Bitcoin infrastructure and reliable Bitcoin exchanges in Venezuela, Bitcoin exchange SurBitcoin is still operating in the country, providing a platform for local people to buy Bitcoin.

Despite the lack of proper Bitcoin infrastructure and reliable Bitcoin exchanges in Venezuela, Bitcoin exchange SurBitcoin is still operating in the country, providing a platform for local people to buy Bitcoin.

Currently, SurBitcoin data shows that the daily trading volume of Bitcoin has reached 58.2, which is still a large volume compared to the daily withdrawal limit of $5. This means that residents in remote areas with cash in their hands can start to buy Bitcoin, a currency with strong liquidity, reliable international exchange rate and incredible portability.