The Venezuelan government has moved to legalise use of Bitcoin as an official currency and legal tender in the country. This is aimed at addressing the hyperinflation its economy is facing at the moment.

Daniel Osorio, the Chief Executive Officer at Andean Capital Management, explained that Venezuela may be on the verge on dumbing its Bolivar currency for one of the leading cryptocurrency around, Bitcoin.

He told the CNBC during an interview that the country is already making moves to incorporate it into their financial system.

“We may well be witnessing the first ‘Bitcoinization’ of a sovereign state,” Osorio said.

Since the beginning of 2017, Bitcoin mining and purchase have massive. This has led to spur in its price and rumours that many countries are contemplating regularizing its usage as a legal tender.

Bitcoin hits a high mark of $5000 in August 2017 due to stipulations of its integration into the global financial system. Also, many analysts have seen this announcement as another selling point that would surely drag up the price of the digital currency.

In Africa, South Africa is the very next to also official legalise the acceptance of Bitcoin as a medium of exchange. This is as many grocery stores and malls in the country accept the use of Bitcoin for payment of goods and services.

The “bitconization” of Venezuela hasn’t happened, but there are many indications that it may soon be a reality.