When your Pin isn't so secret

69 153
Avatar for CoquiCoin
3 years ago

Hello, my fellows Read.cash readers. I hope life rise and shines for you today.

I'm going to tell you about an unusual thing that happens in Venezuela. Imagine this scene. Let say I'm a cashier in a grocery store. And you give me your bank card to pay. I swipe your card and enter all the payment information. And when the card machine asks for the pin, I turn and ask you to tell it to me. Probably, you would think that I'm crazy by asking you for your secret pin. But here, that isn't a rarity. Let me tell you why here your Pin isn't so secret.

Some background

I won't overwhelm you with economic data from my country. But I'll give you some background so you can understand the situation a little.

Venezuela has been under hyperinflation since the end of 2017. We have the third-longest hyperinflation in history. And we're on the way to becoming the second. According to figures that the government recognizes (so the reality may be worst), the annual inflation in 2020 was around 3.000% (130.000% in 2018 and 9.000% in 2019). The devaluation of the bolivar is constant. And we have had two currency reconversions in less than 15 years, where the currency has lost 8 zeros.

Cash in bolivares is scarce. The last time I held a bolivar banknote in my hands was more than a year ago when gasoline was free. Yes, it cost so little that it was free, and the banknotes were to give some tips to those who attended the gas pumps. Now, gasoline is no longer free, but I can talk about that another day. The highest denomination banknote (which entered circulation in March of this year) is 1 million bolivars. Today is worth approximately US $ 0.25. That is the equivalent of a quarter coin.

Image by Ahmad Ardity in Pixabay 

Your Pin isn't so secret

When hyperinflation began. Some merchants and street vendors faced the problem of not being able to sell their goods or services since there wasn't cash. And also, the little cash available was useless because of their low value. Too many merchants hadn't bank card machines. So those who managed to get one avoiding difficulties because at that time there were a shortage of almost everything, even bank card machines. They began to ask for the pins with endless excuses. Some are a bit absurd the truth.

  • The internet connection was bad, therefore the bank card machine couldn't be moved.

  • Fear that the bank card machine would be damaged. And since they were so difficult to replace, they preferred that no one else touched them.

  • The bank card machine was located in a place that was difficult to access.

  • But perhaps the worst of all the arguments was that the amount in bolivars that people usually have in their bank accounts was so little that no one was afraid of being stolen. And it's true nobody wants to have bolivars. In a hyperinflationary economy, you'll always look for a way to protect your money by exchanging it for something of value. People here often take refuge in the dollar, and those without access to it have opted for cryptocurrencies. But a bolivar that falls into your bank account in hyperinflation. It's a bolivar that must be spent as soon as possible before it loses more purchasing power.

But the worst of all the scenes began to occur when, due to the shortage of bank card machines, several merchants agreed to use only one. In those days, you could go for example to buy eggs in a farm market, but the machine was of the one who sold coffee. So the egg seller went with several cards from his customers to swipe them through the point with all the pins written down on a piece of paper.

I remember that at first, the situation bothered me a lot. And I didn't buy in places where they asked me for the pin. Now, it still bothers me. But I end up giving it when I see that the discussion is not going anywhere, more than to affect my mood. But I guess to survive, people had to start trusting each other.

Although today, there are more payment options because there is no exchange control, and the dollar circulates freely. We have an interbank mobile payment system that works quite well. Many places accept PayPal, Zelle, and even cryptocurrencies. Cash dollars circulate freely. But even so, when you make a payment with a bank card in bolivars, it isn't strange that the cashier asks you for your pin. A bad habit that seems to be here to stay.

Image by peltierclem in Pixabay 

ATMs

Another unusual thing in Venezuela today are ATMs. Here, they only serve mainly to check account balances. Most of them haven't dispensed money for years. The main reason is the shortage of cash. But there is also the problem of the number of banknotes they could give you. Just think, how many 1 million bolivares banknotes you would need to withdraw the equivalent of $ 20. Today, the ATM would have to dispense you 80 bills for just $ 20. If the banknote is 500.000 bolivares, the number will be 160 bills only for $20.

Closing thoughts

It's curious that in a country where there are acts of violence, armed robberies, express kidnappings, and several types of scams orchestrated from prisons. On the other hand, people have found it necessary to trust each other to face difficulties. It's "normal" for us in Venezuela to be asked for our bank card pin. But it's far from normal usage. And very close of absurd. There is an immense security breach, and it's one more of the perversions that the entire economic reality of the country has brought us.

Obviously, in a country with these characteristics, payment with cryptocurrencies has a lot of fertile ground to be adopted. Hopefully, it will be like this soon. And in many places, they will accept cryptocurrencies and especially BCH.

And what do you think, would you give your pin in these circumstances?

To all my dear readers and wonderful sponsors, thank you so much!

Images credits on the caption.

Until next time! ;)

July 30, 2021

 

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Avatar for CoquiCoin
3 years ago

Comments

Let say I'm a cashier in a grocery store. And you give me your bank card to pay. I swipe your card and enter all the payment information. And when the card machine asks for the pin, I turn and ask you to tell it to me.

This is totally crazy! I wonder of identity theft is a common thing there?

According to figures that the government recognizes (so the reality may be worst), the annual inflation in 2020 was around 3.000% (130.000% in 2018 and 9.000% in 2019).

This too is totally crazy! Savings become useless overnight? Unless all local currencies were put in forex account.

If the internet infrastructure is unreliable, how is it possible to pay with Paypal or Cryptocurrencies? Are mobile connectivity leaps and bounds better than internet connectivity?

Reading the rest of your article, it sounds like watching a sci-fi movie.

$ 0.05
3 years ago

I haven't heard of theft identity. And is crazy, yes. But the underlying message is that the local currency is worth nothing. The government has just announced a new currency reconversion, where it will remove 6 zeros from the currency. The third in fifteen years. Because of the hyperinflation bolivar that you receive, bolivar that you want to spend as quickly as possible.

The internet is of poor quality due to the lack of investment in recent years and because for a time, the services had regulated prices. That has changed with the release of exchange control, the service is still bad but at least there are more options. People use PayPal, also Zelle, which is a mobile payment between accounts in the US. Payments in cryptos are used not as much as we would like but much more than in other parts of the world. Many people are using the Binance p2p service for payments.

It looks like a sci-fiction movie, but sadly it's very real.

$ 0.05
3 years ago

I do hope it gets better in your country. And I do hope the telecom infrastructure improves so that the citizen has a viable alternative to safeguard their livelihood.

$ 0.03
3 years ago

Let's hope so. Thank you!

$ 0.03
3 years ago

Use Bitcoin Cash.

$ 0.10
3 years ago

I do whenever I can! ;)

$ 0.12
3 years ago

Pin really shouldn't share by others. Buts sometimes there's no choice and it depends on the situation. Thank you for this post of yours.

$ 0.01
3 years ago

You are welcome! And yes, sometimes circumstances make us do things that are unthinkable in a normal situation.

$ 0.00
3 years ago

It is NEVER a good idea to give anyone your card pin. But if you have no option other than to do that it is better to have a card that you could term your 'burner card' which Is linked to a bank account that is to be used for solely transactions where you'll likely have to disclose your pin.

$ 0.01
User's avatar M3i
3 years ago

I like the idea of the burner card. Thanks for stopping by and comment! :)

$ 0.00
3 years ago

I just learned about this just now. In my country people wouldn't share their PIN even with their families. When they go to ATM's they will use their bodies as a cover when entering their PIN. Just their PIN because I don't have a card😅.

$ 0.01
3 years ago

And that is the normal for the PIN of our card to be completely secret, thanks for stopping by and commenting! :)

$ 0.00
3 years ago

Hyperinflation is a real danger, it could happen anywhere to be honest even in the USA! I think as you say it is important to hold some crypto and tangible assets too. I wouldn't be giving out my PIN freely either wherever I was, even if I had very little in the bank. It is a crazy world we are living in.

$ 0.03
3 years ago

Yes, it's a bit crazy to give the pin. But the perversions in the economy that hyperinflation brings are too many. And now, the government have just announced a new currency reconversion. They will remove 6 more zeros from the currency. And also, they are speaking of a digital bolivar. In other words, they won't even bother printing paper money anymore. I think I'll write about this these days;)

$ 0.00
3 years ago

Hello friend CoquiCoin, a pleasure to greet you, thank you for showing one of the sad faces of Venezuela, it sounds illogical this, gives our pins or password to pass the debit or credit cards, however at the beginning when this crisis began, the reason was understood, but in these years, It is the problem of our country, that there is always a justification, that the irrational is always normalized.

However I totally agree with you, Venezuela is gradually moving forward on the issue of the adoption of different methods of payment, merchants have had to reinvent themselves and accept the reality that there is, hopefully in the coming years will breathe winds of change, progress, because the adoption of electronic payments, dollars, or other currencies is simply covering the sun with a finger, while the reality warrants a total change, greetings and thanks to you for this incredible article, greetings.

$ 0.05
3 years ago

Thank you very much for your comment! Hopefully, as you say, the years to come bring winds of progress. I'm always glad to find a user here from Venezuela.

$ 0.00
3 years ago

It is sad to hear how difficult the economic situation is in Venezuela and what a mess it is. :(

I don't understand this now, if you pay by credit card, you always have to enter the PIN code. If we buy online then the CVC code as well. We have to trust each other.

Thank you for the interesting article on the economic situation in Venezuela.

$ 0.02
3 years ago

Hi Judit, yes you are right, we have to enter the pin. But here It has become customary that instead of you being asked to put your pin, the cashier asks you to tell it. And to put it itself. It's crazy and against security. But it's been a consequence of a lot of the cash handling problems caused by hyperinflation. Thanks for commenting. I really appreciate it!

$ 0.00
3 years ago

Ohhhh thats horrifying to tell about your pin. In our country when we used cards to buy on groceries or on any store that accepts cards as payment, the cashier would let us put our own pin.

So that happens during hyperinflation? You lose all the prints of your local currency? I have heard the word many times. But I wasn't really aware what that is. Now I am kind of aware. Thanks for letting us informed! I hope your country will recover and find more sensible solution to the problem you were facing! Hope for the best!

$ 0.03
3 years ago

Yes, it is a bit terrifying to be asked for your pin. But the worst is what it's behind that. The economic background, our currency is worth so little because of hyperinflation that nobody cares about taking care of the little amount of local currency they may have. Everybody wants to spend it as soon as possible.

Thank you very much for your good wishes. :)

$ 0.00
3 years ago

Hi, my friend. You wrote a great article. I understand why you can say your Pin to the shopkeeper. I am afraid to give my Pin in my country but no one wants it. I would like to know how much costs petrol in your country now?

$ 0.00
3 years ago

Reminds me of our visit in Bali. I was an instant millionaire when we exchanged USD100 to their currency. I can easily be a millionaire there too :D jk

Here, they don't ask for your pin but you will be the one to punch it in. It's good that you have Paypal and some crypto accepted there.

$ 0.02
3 years ago

Hehe, here you can be a millionaire with just 1 dollar! 😂

Now that we don't have exchange control, we have many options to pay. Paypal, Zelle which are instant transfers within a US account, dollars, and euros in cash, are accepted almost everywhere. Cryptos are accepted in some places, but they are not as widely used as they should be. And if you want to pay with the local currency, you can pay with instant mobile payments or use your bank card. And probably, you will be asked for your pin. 😂

$ 0.01
3 years ago

What? That's crazy! I would carrying loads of cash just to buy one item. That's really tough. Does everybody has access to cards or mobile payment?

$ 0.01
3 years ago

Most of the population has access to a bank card. But not everyone uses mobile payments. And recently, the cash payments in US dollars have increased a lot.

$ 0.00
3 years ago

That's quite absurd to me but if it need be to survive, I think I can also adjust. I hope the situation will get better in your country soon. And yes, crypto may be one that can help ease some financial burden, only if the masses accept their use.

$ 0.05
3 years ago

It's a somewhat absurd custom that perhaps at some point it was necessary. But it's no longer the case. However, people keep doing it. Basically, because nobody usually has a lot of local money in their bank accounts because of hyperinflation. So nobody fears being robbed or have their card cloned. I also would like everything to improve. But in the meantime, we have learned how to live dealing with inflation.

$ 0.00
3 years ago

That's good to know. And that perhaps is one situation where man's ability to adjust, survive, learn and thrive really show. I admire you even more :)

$ 0.01
3 years ago

Wow. It is so sad it is happening in Venezuela now. That is why crypto- awareness is really vital. I hope that hyperinflation will be solved eventually so the country won't be lacking of cash. :(

$ 0.01
3 years ago

I think we've already gotten used to living without cash in our local currency. And at least now, the dollar is free to circulate. Before we had an exchange control. But it's definitely a great opportunity for people to become aware of the potential of cryptocurrencies.

$ 0.00
3 years ago

Very interesting and sad story. My heart goes to ordinary people of Venezuela. They sure didn't call or deserve those kinds of hardships. However compassion won't help them. They need overall solution. In their neighborhood there is president of El Salvador who wants to replace national currency (USD!) with Bitcoin. We will see how will that go soon enough. But if I remember correctly Venezuela already introduced crypto currency to replace Bolivar. That obviously didn't go well. I am sure they tried hard and had high hopes in that solution. Still it didn't work out. In my mind I am not surprised and I think this will never workout. Crypto currencies are baseless, empty creations of software program that is easy to create, manipulate, basically cheat when and where needed. Real solution is going back to the basics. I wrote a book about it. It is published on Amazon Kindle, "Endless quest for the perfect money" (https://www.amazon.com/endless-quest-perfect-money-failing-ebook/dp/B08WHSWS35/). To avoid suspense basics are gold and silver, especially silver. That is what book is about. As we speak I am writing a second book with working title "Be Your Own Bank = BYOB". Far fetched fantasy? I don't think so. It worked for thousands of years for all civilizations on Earth. We will experience soon a global money reset and mankind can't make mistake with it.

$ 0.00
3 years ago

Thank you for your kind words about what is happening in Venezuela. But I don't think I understand the intention of your comment. The CBDC currency that the Venezuelan government launched, the Petro, isn't a cryptocurrency since it is controlled by the state. That's why people don't want to hear from it. And it was a failure. I do believe that cryptocurrencies are the future.

$ 0.00
3 years ago

I wanted to say that, in my opinion, crypto is not an answer. I think we will find out that soon enough when El Salvador switches to Bitcoin. That is regardless if it is a free market crypto (like BTC or Ethereum or anything) or Government sponsored and controlled one. There is only one type of crypto currency that will succeed and that is crypto 100% backed up by silver or gold. I think China and Russia will be the first ones to issue it. For the rest of us the best monetary system we could have and use would be one based on silver. Ask Mexico, they have silver Libertad and active silver mines. In such move to globally reset currencies they will benefit from switching to silver as a money.

$ 0.00
3 years ago

Thanks for your comment. But the truth is that I don't believe in currencies backed by governments. Digital currencies launched by economies like China, Russia, and even Venezuela are not backed by gold. It's a mirage. It's just one more coin, they handle at will. Just as they do with fiat money that they print non-stop without any backed to increase spending. But time will tell us who is right.

$ 0.00
3 years ago

We have to adapt to stay alive. It is a weird concept to many, but I remember my parents owned a guest house and they would take card payments over the phone, and get peoples PINs. I would only give if I knew I didn't have much balance in my account. That reminds me of a story years ago about someone using my Amex card to buy over 1000 pound of alcohol, but he was stopped as he didn't know my PIN.

$ 0.05
3 years ago

Agree, we have to adapt. But even when we no longer need the weird concept. People have already assumed it as "normal". People say the Pin out loud, and not only the cashier hears it, but everyone who is nearby. Kind of unbelievable. Mainly because most don't have so many bolivars in an account to worry about them. Wow, 1000 GBP in alcohol is a lot. The scammer wanted to drink a pool of liquor at your expense! LOL

$ 0.00
3 years ago

It is really weird , letting everyone know your pin :) Yes American Express phoned me at work, seems I was pickpocket on the way to work in London.

$ 0.00
3 years ago

You were lucky that they called to alert you since you didn't even realize that your card had been stolen.

$ 0.00
3 years ago

It was my whole wallet haha, all my cards and cash too, but yes was lucky they called.

$ 0.00
3 years ago

Many years ago, I was robbed once by a pickpocket on a train in Italy. I realized when it had been a while. I was lucky to get my wallet and cards back because the pickpocket threw them in one of the train toilets. But I lost all the cash. Here, pickpocket robberies aren't common. Robbers here point a gun on you!

$ 0.00
3 years ago

Yes I can imagine , robberies like that we call muggings and happen with knives , but yes I imagine a gun in the Americas

$ 0.00
3 years ago

This is really bad. I thought the situation here was bad i didn't know there are countries facing similar situations and even worse.

$ 0.02
3 years ago

The situation can always be worse. But it is in our countries where cryptos will start to be adopted first. To overcome all difficulties. :)

$ 0.00
3 years ago

This is so scary but if it is regarding an important things nor situations, I'd prefer to give my pin and trust to them than I will be in a complicated situation...

God bless you ma'am..🙏❤️

$ 0.01
3 years ago

Thank you for commenting and stopping by!

$ 0.00
3 years ago

You're always welcome maam...

$ 0.00
3 years ago

Wow this is kinda sad, Coqui. Survival of the fittest. I thought I live in a cruel world.

$ 0.02
3 years ago

It's sad how a government can destroy the economy of a country. But on the other hand, people always look for a way to overcome the situation. Sometimes they are ingenious. Others, they do crazy things like this, kind of unthinkable for anyone who lives elsewhere. This is why cryptos here are so well seen.

$ 0.02
3 years ago

Crypto, our savior!

$ 0.01
3 years ago

Woah... this is unusual hereninour country for sure.. i for one won't be giving out my pin to someone lest a stranger...but if I am in your shoes, perhaps I might do the same

$ 0.02
3 years ago

Yes it's an unusual situation in any place that here has become "normal". Sometimes out of necessity, others I think a little by careless.

$ 0.00
3 years ago

Indeed, so do you often change your pins?

$ 0.01
3 years ago

Good question! 🤔 In fact, I haven't changed it for a long time. I guess since I don't usually have too much local currency in my account. I don't care. And it is the case for most of the people here.

$ 0.00
3 years ago

I'd rather pay and trust them than starve myself haha. Just my own opinion 😁 I'm afraid to be starved really.😂

$ 0.02
3 years ago

😁 Actually, that was a bit of what happened. People for fear of starving or not surviving, have done things that seem impossible in other circumstances.

$ 0.00
3 years ago

It's actually scary when you think if it seriously. But still , I will go for food tho. 😂

$ 0.00
3 years ago

Of course, food will always be the first choice! 😂

$ 0.00
3 years ago

Haha yah exactly 😂

$ 0.00
3 years ago

I can't imagine how I would be able to deal with hyperinflation for too long. Thanks for letting us understand a few more things about that. Passing experience like that could be vital for all of us no matter where we live. Missmanagement of the financial system seems to be on the rise lately almost everywhere.

$ 0.05
3 years ago

Facing these types of situations definitely changes our perspective. If someone had told me 10 years ago that I would live 4y dealing with hyperinflation, I would have considered it as impossible. But when we have to face situations, we end on learning to deal with them.

$ 0.00
3 years ago

You have made a good tour of some of our most common difficulties in the economy and how we learn to trust others contrary to what bank managers recommend.

$ 0.05
3 years ago

That's right. It's a situation that goes against all bank security rules and is very difficult to understand if you don't have to live it. These days, my husband was with a person from his work who came from Mexico. They went to buy something at a pharmacy, and when my husband has been requested to give his pin. The person was completely in shock!

$ 0.05
3 years ago

I can't stop laughing at what you say.... Yes, we live in crazy times.

$ 0.00
3 years ago

We have to laugh not to cry 😂😂 We need to see the funny side of things. My husband says that the woman couldn't believe that he gave the pin that way to the cashier and that everyone in the pharmacy could hear him. LOL

$ 0.00
3 years ago

This is something that people who live outside tell me. That we Venezuelans laugh at our own tragedies. That is like doing therapy and helps us not to die in the attempt by being crazy or frustrated.

$ 0.00
3 years ago

Exactly, the therapy we need!;). Sometimes, I write something here, and people don't know what to say. They think we are suffering. And the truth is that we have difficulties. But we go ahead to overcome them and laughed a lot!

$ 0.00
3 years ago

Huh, that would really be scary and give me anxiety once i give my pin to a store just to buy..

$ 0.02
3 years ago

Yes, the situation could be quite scary if you look at it out of context.

$ 0.00
3 years ago