Pardon me for perhaps being naive... but doesn't Venezuela border Brazil? Would it not be possible to set up a network using BitInstant's Boleto system in a Brazil town on one side of the border, and an exchange in Venezuela on the other side of the border?
Population density close to the border is way too low to sustain such a thing, IMHO. Take a look at
this image. The lighter color means less than 5 people per squared kilometer. It's basically just jungle over there.
So, many people crossing over is just not going to happen. And a few people working as intermediaries is dangerous (the intermediary may run away with your cash, or call too much attention to himself and end up being caught). I know, drug dealers do this all the time, but well, they're drug dealers. They may charge a huge premium for their services and still sell their product. I don't think the same applies for cash conversion.
Exactly. If the Venezuelan situation is anything like the Argentine one, there are enough people in the country who already have US-based bank accounts (illegal as it may be for them to have them). All it takes is for a few of them to be willing to buy BTC, then sell them locally, for a nice premium.
Alternately, any Venezuelans with relatives or friends in the US, Canada or Europe could easily set up a system whereby the foreign resident buys BTC and sends them over for them to sell locally, instead of having their relatives wire them money via Western Union or PayPal, for instance.
