President of Venezuela Wants to Use Cryptocurrencies

The local population in Venezuela is struggling to meet end meet for several years. The state of the local economy is very bad, to say the least, as the government was unable to get the economy back on track. Recently, the president of Venezuela, Nicholas Maduro presented a bill. The purpose of this bill is to help the country overcome the impact of U.S. sanctions. According to Maduro, the country’s government is looking at various cryptocurrencies, as the country wants to evade sanctions.

It is worth mentioning that, as part of the bill, the country will study the possibility of using diverse cryptocurrencies in both domestic as well as foreign trade. According to Maduro, the new anti-sanctions bill involves both private and state-backed crypto initiatives such as Venezuela’s Petro.

As a reminder, Venezuela launched the world’s first national oil-backed cryptocurrency in 2018. This cryptocurrency is purportedly designed to attract foreign investment. Another purpose is to avoid U.S. sanctions. People should keep in mind that, it is not possible to purchase Petro outside of Venezuela. 

Cryptocurrencies and U.S. sanctions

Interestingly, based on the information taken from the online reports, Venezuela’s legislative body, the National Constituent Assembly is reviewing the new bill.

Importantly, the latest news shows that Venezuela’s crypto interest goes beyond the country’s national cryptocurrency. The latest news once more underlines that the government wants to use cryptocurrencies to avoid sanctions.

It is worth noting that, Venezuela’s government issued an official regulatory framework for the mining of cryptocurrencies such as Bitcoin. Notably, on September 23, the country’s National Superintendency of Crypto Assets and Related Activities issued the first decree regarding the crypto mining activities. This decree includes specific requirements for miners such as an obligation to join the so-called “national mining pool”. The government should work with the international community to improve conditions in Venezuela.