Venezuela’s cryptocurrency industry and sanctions

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Bitcoin and its problems

One of the main advantages of cryptocurrencies is that it is a decentralized system. It means that central banks are not controlling this industry. As a result, it is hard to track crypto payments. This fact makes the crypto money, more attractive to various companies as well as countries. One of the counties which realized this fact is Venezuela. They are looking for options that will help them to evade the sanctions.

It is a well-known fact that Venezuela has the largest proven oil reserves in the world. However, due to sanctions, it is getting harder and harder to export oil to its customers. Sanctions imposed on the Venezuelan government as well as state-owned oil company PDVSA significantly affected the local oil industry.

Nicolas Maduro, who is a president of Venezuela made a comment regarding the cryptocurrencies. He talked about this topic in his televised speech. Maduro stated that the central bank of Venezuela, as well as the Finance Minister, is working to introduce the crypto transactions. He said that any person or company would have the possibility to use this system.

This is not the first time when Venezuela tried to enter the cryptocurrency market. For example, in 2018, Maduro unveiled a national cryptocurrency called Petro. However, Petro is far from being a successful digital currency.

Cryptocurrency news from South KoreaVenezuela and sanctions

On September 27, the Seoul Southern District Court in South Korea ordered the local crypto exchange to pay the compensation. It is important to mention that a Coinone is a Korean crypto exchange. Seoul Southern District court decided that the crypto exchange partly responsible for the loss of digital currencies. According to the lawsuit, the crypto owner lost most of its digital currencies as a result of cyber theft.

On October 2, Bitcoin’s price was $8,218. It failed to break the resistance level above $8,500.

Digital currencies have the opportunity to boost the local economy. However, there are several issues that may have a negative influence such as cyber theft, etc. Countries and companies should work harder to minimize the damage caused by such activities.

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