📊 The dollar is not a perfect safe haven

The economist and dean of UCAB, Ronald Balza, raised alarms after saying that eliminating the bolívar and replacing it with the dollar would be an "inappropriate" step in the current context. His main argument: the United States is involved in military and commercial wars that make the dollar not exactly a safe port. For the Venezuelan P2P market, where USDT and digital currencies have become a lifeline for thousands of people, this warning echoes directly. Total dollarization is not a magic wand—especially not when the benchmark pattern is also shaky.

📈 The bolívar is not to blame

Balza was forceful: the inflation that is plaguing Venezuela does not originate from the bolívar, but from the way the Government has used it to finance itself through the Central Bank since 2005. In plain terms, this means the problem is monetary policy, not the currency itself. In the P2P ecosystem, we see this every day: Venezuelans seek refuge in the dollar and in USDT because the uncontrolled issuance of bolívares strips them of purchasing power. But that doesn’t mean that if tomorrow the bolívar disappeared, all the ills would be solved. On the contrary, P2P would still exist, but with a more complex web: there would be a need to handle physical and digital dollars, plus a formal economy that is not yet ready for a dollarization of that magnitude.

🔎 The opacity that hits P2P

The dean also put on the table the lack of transparency: the real income from oil sales is not known, nor the exact amount of an external debt that is around 240 billion dollars. Without reliable information, the country risk spikes and the price of the dollar in P2P exchange booths moves more due to speculation than fundamentals. Traders and USDT users know that in Venezuela the exchange rate is negotiated in the dark, with uncertainty as the only certainty. Balza’s proposal to open the data and redistribute public resources is key so that private investment, including the one that reaches the crypto sector, finds a less swampy ground.

💰 Total dollarization: what would happen in P2P?

If one day the bolívar were eliminated, the P2P market would not disappear, but the dynamics would change. USDT would remain king in digital transactions, but there would be less room for P2P trade between bolívares and the dollar. Many users take advantage of the differences between the official and parallel exchange rates to do business. Without the bolívar, that profitability would vanish. Also, the State would need dollars to pay salaries and public spending, which would cause a capital flight that no country with structural problems could withstand. No surprise then that most economists, including Balza, agree that in these conditions, such a measure would only worsen the crisis.

🛡️ Technology as a bridge

The debate about the bolívar and the dollar should not ignore the role of cryptocurrencies. At PitbullChain, we believe the intermediate solution already existed beforehand: using blockchain technology to create a more flexible financial system. Venezuelan P2P is a global experiment in resilience, where people figure out ways to protect their money with USDT, but without giving up trading in bolívares when it suits them. Balza’s call for private investment and the redistribution of resources is a nod to that ecosystem, which today survives despite the little regulation in the sector. If space were opened up for legal fintech and exchanges, Venezuela could become a crypto hub in the region.

⚠️ Conclusion: eliminating the bolívar is skipping the problems

Ronald Balza’s stance is not an academic whim. It’s a reminder that Venezuela’s problems aren’t solved by changing currencies, but by changing the economic model. P2P, with its mix of bolívares, dollars, and USDT, is the clearest proof that the country has already found a pragmatic exit, even if it’s imperfect. The question isn’t whether we remove the bolívar—it’s whether we’re going to make the bolívar and the dollar coexist in a system that benefits everyone. Meanwhile, P2P will continue to set the real pulse of Venezuela’s economy, separate from speeches and decrees, moving at the speed dictated by necessity.

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