Any currency can be used as a parallel currency. Cryptocurrency doesn't have a monopoly on that. Usually people just use dollars when their native currency is worthless.

Sure, good luck using dollars without any banking services. The dollars are so safe under your pillow. Especially since the country is so stable and nice and criminals are so nonexistent. Very good plan.

In practice it's exactly what happens.

Bitcoin volume in Venezuela today is a rounding error. But most of the country is using physical USD to transact.

Crypto still has not solved two key problems, volatility and usability. Most people are not technical. Most people are also not OK putting their savings in something that can easily lose half its value in a month.

Internet services are regulated by the state, and it's not unheard of for states to turn off access during periods of mass upheaval, or block websites wholesale. What then?

It’s still very rare. Most of the time you can connect to VPNs.

Elon Musk's Starlink would like to have a word with you.