USA is Planning to Prohibit Visa & Mastercard Transactions in Venezuela, Time for Plan ₿ (Bitcoin)
Venezuela, a country that is currently home to hyperinflation while running rampant with the economic and political crisis is soon going to face more sanctions from the US that would effectively curb Mastercard, Visa, and other financial institutions from processing transactions in Venezuela.
The step is to cut off the funds to Nicolas Maduro’s regime, said an administration officer reported by Bloomberg. The Trump administration is only considering it for now but if it decides to move forward, such sanctions could prohibit US companies from engaging with entities that recognize Maduro as the president of Venezuela.
Currently, White House, Treasury, and other administration officials are debating how to proceed and no decision has been made yet, as per the officials. Similar limits on international transactions have been imposed in Iran, Syria, and North Korea and to some extent in Russia.
Here, the US is aiming to squeeze Maduro and his military allies along with upper middle class and connected Venezuelans who have access to credit cards and bank accounts. The move also has the potential to impact aviation, power, agricultural, and oil companies that engage in business in Venezuela. Companies like America Airlines Group and General Electrical and its local contractors can also be affected.
Depriving the Maduro Regime
Payment giants, Mastercard and Visa account for the majority of the transactions in the country. And such restrictions might prompt other payment processing companies to pull out of the country as well.
Now with these sanctions, the purpose is to continue to deprive the Maduro regime to access funds. The official told Bloomberg that they want to deny the illegitimate Maduro regime to steal from the Venezuelan people.
In late January, the opposition chief Juan Guido declared himself the interim president until fair elections can be held. The US has also recognized Guaido as the legitimate leader of the country and has been levying sanctions to shut off Maduro’s access to currency, though Maduro still has support from Russia and China.
Just recently, as we reported Venezuela suffered a nation-wide power outage that affected about 96 percent of the Venezuelans. The situation in the country is getting worse with each passing day that involves a shortage of medicine and food.
During these times, Venezuela has shifted towards alternative currency Bitcoin, which unlike fiat can’t be created out of thin air. It is further censorship resistant and moves all across the world with no boundaries and borders.
However, the country is not only in need of a better currency and political structure but also the economic condition that involves basic amenities.