- “Venezuela is working within the cryptocurrency world,” says President Nicolas Maduro.
- The government has considered adding Bitcoin and Ethereum to their reserves, but further testing is necessary.
Venezuela originally introduced their country to the world of cryptocurrency with the launch of the Petro, a state-issued cryptocurrency that is backed by the oil reserves in the country. Even now, years after the launch, President Nicolas Maduro struggles to find any country to accept the Petro instead of the US dollar for trading and the oil market. Madura had stated that their system “works perfectly in China and Russia,” but found no success in the rest of the international financial structure.
Now, The Block reports that citizens will have a payment method “very soon,” according to President Maduro. With the new cryptocurrency payment method, new instruments will be offered for “free national and international payments,” which means that banking transactions will be accessible by everyone. Maduro made these statements in a televised press conference, which was reported on by Bloomberg. Maduro added that the new instruments will be
“activate[d]” soon, and that “Venezuela is working within the cryptocurrency world.”
Reports last week stated that the central bank was considering adding Bitcoin and Ethereum, among other cryptocurrencies, to its international reserves. Bloomberg reported, at the time, that the central bank as interested in cryptocurrencies, adding that the bank is presently running tests to see if the aforementioned cryptocurrencies are able to be stored in its reserves, considering that they are non-sovereign assets.
Due to US sanctions against the country, the financial options for Venezuela are relatively limited, which is how the government came up with the idea of using the Petro, which has not been successful. Presently, Venezuela stands independent from the current financial system across the globe, making its current economic and humanitarian crisis become even worse for citizens. In an effort to climb out of these circumstances, officials are seeking out alternatives.
Juan Guaidó, an opposition leader that has been recognized by many countries for his claim to the presidency, stated that the changes for Maduro have been out of “desperation.” In an earlier press release, he remarked,
“To resort to that kind of subterfuge emphasizes the economic crisis the regime is going through.”
As for the cryptocurrency industry, there are some experts that believe that even toying with the idea of using Bitcoin would be a bad idea. Alex Krüger, a US-based market analyst, stated that it could lead the United States to consider Bitcoin to be a conflict with national security.
Bitcoiners are celebrating the central bank of the 9th most corrupt country in the world considering holding bitcoin
… as Petroleos de Venezuela somehow owns some bitcoin and is desperate to use it to skirt US sanctions.
Common sense indicates this is not at all bullish.
— Alex Krüger (@krugermacro) September 26, 2019
Anthony Pompliano, the co-founder of Morgan Creek Digital Asset, believes that there are many central banks that would follow in Venezuela’s footsteps instead. He quipped,
“Just a matter of time before the game theory kicks in.”
Consumers can watch the recent announcement by following this link: