Cryptocurrencies

Maduro explains that Cryptos and Bitcoin (BTC) are useful in Venezuela against Financial Sanctions – Cryptocurrencies

According to the President of Venezuela, Nicolas Maduro, all cryptocurrencies would be welcome to circumvent US sanctions and revive the Venezuelan economy. Change of direction ? What about the Petro? What about Bitcoin (BTC)?


Other cryptocurrencies to rescue the Petro?

President Nicolas Maduro recently said that the government he chairs is now considering promoting various cryptocurrencies such as potential means of transactions, to bypass the numerous sanctions that Venezuela has been facing for several months.

With this in mind, without delaying last September 29, he presented a new bill that promote the use of various cryptocurrencies both in domestic and foreign trade.

According to him, the new bill involved both private and state-sponsored cryptocurrency initiatives such as Petro. The anti-sanctions bill is the first response […] to give new strength to the use of Petro and other cryptocurrencies, domestic and global, in domestic and foreign trade, so that all cryptocurrencies in the world, state and private, can be used. This is an important project in development.

According to several media, this new bill is gaining ground and is also under review by Venezuela’s legislative branch, the National Constituent Assembly.

Petro, the national cryptocurrency

Given the news, it’s clear that Venezuela’s interest in cryptocurrency is no longer limited to the country’s national cryptocurrency, the Petro, long positioned as a major tool to evade US sanctions.

Indeed, for a long time Nicolas Maduro was the spokesperson for Petro and seemed not to offend other cryptocurrencies. As a reminder, Petro is a cryptocurrency backed by an underlying made up of national oil reserves, which it would not be superfluous to qualify as potential. Even if the president wants to be reassuring and advances a guarantee of the order of 30 million barrels.

Officially deployed in February 2018, the Petro became the world’s first national petroleum cryptocurrency. It had been launched on the one hand to attract foreign investment and on the other hand to avoid US government sanctions. However, the token is still not available for purchase outside of Venezuela.

Within the country, however, there will be no shortage of users. Indeed, the president is doing everything to ensure that it is adopted by Venezuelans. Thus at the end of 2019, the government had already decided, for example, to pay 8 million public sector workers in the country, 2 months salary in Petro cryptocurrency for Christmas. A year earlier, he had already started paying retirees their pensions in this same cryptocurrency.

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Another illustrative example of President Nicolas Maduro’s desire to see the Petro triumph is the decision he made to sell oil, gold and steel only with the Petro. The new line adopted by Nicolas Maduro has something to delight the cryptosphere. What is certain is that Venezuela will continue in its strategy of independence especially vis-à-vis the dollar. Recently, the creation of a national Bitcoin mining pool confirmed this strategic shift.

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