Venezuela’s Government Is Reported To Be Using Bitcoin In Airports To Evade Sanctions

Bitcoin is so popular in Venezuela that even the government is using it. You read it right, even the Venezuelan government has decided to ditch its own failed crypto Petro in order to use BTC instead.

According to reports from an Spanish media outlet called ABC (don’t confuse it with the U. S.-based TV channel), the president Nicolas Maduro has decided to authorize the use of an app to collect taxes from airports and convert them to BTC.

Curiously, the app that is being used by the team is made by an American company and it is called Jet Man Pay. Venezuela is reported to be converting BTC with the help of friendly countries such as China, Russia and Hungary. Then, the money was sent back to Venezuela.

After the trades, the funds which are gathered from the companies are deposited a USD in accounts that belong to the government of these countries. This way, Venezuela completely evades the sanctions of dealing with the dollar directly.

ABC affirmed that the method was devised around a year ago and that it is being used to avoid sanctions without the U. S. government noticing. So far, it has been working pretty well.

Maduro is reported to be also planning to start using the same plan on other airports of the country. So far, it has only been used in Caracas, the capital. The Maiquetia International Airport was the only one using the system so far.

Before now, the country faced several difficulties in making these payments as it faced U. S. sanctions, especially to its state-backed oil company PDVSA.

It seems that despite how the government championed for the Petro last year, Maduro decided for the more widely adopted Bitcoin as an alternative. A wise choice, actually, as the Petro received as many sanctions as Venezuelan oil companies, so it was hard to make it work well after all.

While Venezuela continues to suffer from hyperinflation, the history of the Petro may seem like a failure. However, the love of the government for cryptos was not abandoned and they just decided for a more decentralized option in order to avoid sanctions. Will Bitcoin continue to grow in the country? Looking at this situation, probably yes.

The only doubt now is whether the U. S. government will act against Jet Man Pay for aiding its foreign enemies or if the company will be able to continue its activities unharmed.

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Gabriel Machado
Brazilian journalist who is interested in the future of the financial world. Has a special interest in the blockchain technology and the global financial markets. Covers economic and technology news with a focus on the fintech industry and has been writing about the cryptocurrency market since the start of 2017.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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