President Maduro wants to introduce crypto payment methods | BTC-ECHO |
According to Maduro, "The Minister of Finance and the Central Bank of Venezuela have new tools that we will soon activate so that everyone can do banking, national and international transactions through the central bank's accounts."
Like the US news portal Bloomberg Venezuela's central bank is currently conducting internal reviews. Among other things, the central bank wants to check whether it can hold cryptocurrencies in its reserves. The investigation is driving Petroleos de Venezuela SA, Latin America's largest oil company. The PDVSA sends Bitcoin and Ether to the monetary authority to pay off the suppliers of the oil company with the tokens.
"The use of cryptocurrencies by the regime shows despair," said Juan Guaido of the opposition. "Using this kind of deception underlines the economic crisis in which the regime is located." According to Guaido, the Venezuelan government's interest in cryptocurrency points to the country's desolate economic condition. The state's efforts to find alternative payment methods was an attempt to avert further economic damage from the land.
Maduro and the PETRO
Due to US economic sanctions, Venezuela is largely cut off from the global financial system. The country is experiencing a severe economic crisis, which is prompting the government to develop methods to secure its liquidity. However, Maduro's plans to introduce a state cryptocurrency have largely failed. However, the ongoing efforts to introduce digital currency illustrate how desperate the government is to find a way to avoid the impending state bankruptcy.
"Donald Trump and his sanctions prevent Venezuela from executing transactions in any of the world's banks," Maduro said. "There are other ways to pay, and we use them because our payment system works perfectly in China and Russia."
In the context of alternative digital currencies, Maduro speaks of a "magic formula" he has found to stem the country's inflation. The idea behind it: its own, state-controlled crypto currency called Petro. The Venezuelan Bolívar is said to be linked to the cryptocurrency Petro, which in turn is tied to the value of Venezuelan crude oil. This double linkage is supposed to stabilize the new national currency, according to the hope of the government. Whether the petro is actually introduced remains questionable. Rather, the scenario of its own cryptocurrency seems to be just one building block in Maduro's political calculation, at times slowing down the collapse of Venezuela's economy.
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