Here he is not referring to the people of that country, he is referring to the central bank!
It is normal for people to hold coins, but for a central bank, it will be a disaster when the prices of coins are constantly dumped. The economy of that country will go down and the government must borrow from another country to pay for the country.
This is really a risky decision by the central bank of Venezuela, just hope that bitcoin will increase and their people will be less miserable.