Posted 2 years ago | by Ben Armstrong
Venezuela Wants to Use Crypto to Skirt Sanctions
In a recent public statement, the president of Venezuela, Nicolas Maduro, stated that cryptocurrencies are expected to offer a solution to fight sanctions against Venezuela.
As part of the bill, Venezuela will conduct research to explore the potential of using diverse cryptocurrencies in both domestic and foreign trading – as the nation is effectively locked out the Western financial system.
Venezuela Has Massive Problems
According to Maduro, the latest anti-sanctions bill covers private and state-supported cryptocurrency projects such as the national cryptocurrency, The Petro (PTR).
"The anti-sanctions bill is the first response [...] to give new strength to the use of Petro and other cryptocurrencies, national and global, in domestic and foreign trade, so that all cryptocurrencies of the world, state and private, could be used. This is an important project that is under development.”
Regarding the new bill, online reports revealed that the National Constituent Assembly, the Venezuelan Parliament is performing a review process of legislation – although the independence of this body is highly questionable.
The Petro is a Joke
According to updates from the Venezuelan government, while the Petro plays a key weapon to overcome US sanctions, people in Venezuela haven’t considered it as a good way to save and spend.
The Venezuelan people prefer decentralized crypto – and not another fiat offering from their repressive and corrupt government.
Maduro’s speech came after a government of Venezuela released an official regulatory structure on mining of Bitcoin ( BTC) cryptocurrencies.
On 23 Sept, the National Crypto Asset and Related Activities Superintendency of Venezuela announced its first decree on the control of all crypto mining activities, specifying unique conditions for miners, for example an obligation to follow the "national mining pool."
As media previously reported, Maduro showed no support for cryptos, instead, the national regulator set expectations for the state Petro.
Maduro announced at the end of 2019 that the country will pay Christmas bonuses for retirees and pensioners in Petro. The Government of Venezuela reportedly transformed the monthly bonus of pensioners into Petro by the end of 2018.
The value of the Petro is based on the country's reserves of oil, natural gas and minerals – however – the value of these assets is low as the industry is in shambles.
The United States has banned individuals and organizations from buying Petro – although this may not have been necessary – as the Petro is a worthless token that will likely never be used as anything but propaganda.
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