Venezuela Is Going to Use Crypto for Payments, Maduro Says

UTC by Teuta Franjkovic · 3 min read
Venezuela Is Going to Use Crypto for Payments, Maduro Says
Photo: Marco Verch / Flickr

Maduro believes in the power of cryptocurrencies like Bitcoin and Ethereum. He says that his cryptocurrency-powered plan will help the country “maintain [the flow of] imports and exports.”

Venezuela’s President Nicolas Maduro openly admitted that his policy is definitely pro-crypto – especially regarding Bitcoin and Ethereum. He said Venezuela’s government will use cryptocurrencies as a “method for free national and international payments.”

Let’s not forget that the U.S. imposed sanctions that have largely isolated the country from the global financial system, causing one of the world’s most severe economic crises and forcing statesmen and executives to use a whole new network finding ways of moving money around.

Even though America imposed sanctions, it doesn’t seem Maduro is lost.

He said:

“Donald Trump and his sanctions are blocking Venezuela from carrying out transaction in any of the world’s banks. There’s other formulas to pay, and it’s what we’re using, because our payment system works perfectly in China and Russia.”

Maduro also noted that Venezuela’s finance minister and central bank are looking forward to introducing “new instruments.” Even though his views might be controversial, it seems that he is one of the rare statesmen who really understand the crypto’s point. He actually confirmed that by using cryptocurrencies, Venezuelan citizens will get the actual access to “national and international payments through the central bank’s accounts.”

Maduro’s words came only a week after it was reported in several media that Venezuela’s central bank is interested in cryptocurrencies. As per sources, the central bank is undergoing internal testing in order to decide whether it will have non-sovereign assets as are Bitcoin and Ethereum in its reserves.

An interesting thing is that this research is requested by Petroleos de Venezuela SA (PDVSA), a state-run oil company, that obviously wants to manage its market operations with the central bank and its offshore distributors in cryptocurrencies.

The U.S. imposing sanctions on Venezuela obstructed the country’s global financial sources. If you look at the Latin American territory on a macroeconomic level, you will see that it stands pretty much lonely comparing to the international finance system and we’re talking about really huge extents of, probably one of the world’s worst humanitarian and economic crisis.

Maduro tried to minimize damage by launching the Petro thinking that it will flow independently across borders through the independent blockchain protocol. However, he hasn’t succeeded and has decided to explore some other solutions. One of them is decentralized cryptocurrencies such as Bitcoin.

On the other hand, there is an opposition leader Juan Guaidó, who is heavily supported by more than 60 countries, and he said that Maduro regime’s move is “an act of desperation”, adding that it could only prolong Venezuela’s already severe economic crisis.

He said:

“The regime’s use of cryptocurrency shows desperation. To resort to that kind of subterfuge emphasizes the economic crisis the regime is going through.”

Some establishments within the cryptocurrency sector think that Venezuela’s love for Bitcoin is bad. Market analyst Alex Krüger tweeted that the U.S0. would increase its crackdown on Bitcoin as a “national security issue.”

Still, Morgan Creek Digital Asset’s co-founder Anthony Pompliano said that other central banks could follow Venezuela by starting to hold Bitcoin in their reserves in the future.

“Just a matter of time before the game theory kicks in,” said he.

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Teuta Franjkovic

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.

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