July 2020, Bitcoin (BTC) mining becomes illegal in Venezuela. The government justifies its position by citing the excessive amount of energy required for mining. September 2020, the Venezuelan authorities finally authorize the mining of cryptocurrencies, but miners must request an authorization and join the national mining pool. Difficult for Nicolas Maduro to do without cryptos with a country deprived of the dollar for its imports and a Petro (PTR) which ultimately did not live up to expectations.
Army salutes Bitcoin
The regime of Nicolas maduro looks to the crypto industry to keep the country’s economy afloat.
On November 17, 2020, a brigade of engineers from the Venezuelan army shared on Instagram the inauguration of the Digital Assets Production Center of the Bolivarian Army of Venezuela.
The video shows a center housing a lot of mining hardware intended to solve the Proof of Work algorithms.
The general Lenin Herrera said the operation was aimed at strengthening and empowering the units of the Bolivarian Army.
He said these mining operations will generate unblocked sources of income and that it is a trusted alternative to a system controlled by colonialist interests, a statement obviously aimed at United States.
The Venezuela is subject to numerous economic sanctions that deny it access to international markets.
Finally on a level playing field thanks to cryptos?
The collapsing oil price and political turmoil have led to historic inflation in Venezuela, a situation that has worsened since the spread of the pandemic.
In September 2020, Maduro had proposed the establishment of a Anti-Blocks Law which advocates the use of cryptocurrencies to evade sanctions and access international funding.
The administration Maduro had launched its own digital currency, the Petro, which has had limited success.
The United States are closely monitoring the situation in the country. The admiral Craig stephen hinted at a link between drug trafficking, terrorism and the crypto industry.
Bitcoin is a weapon against dollar hegemony, you might as well put it in the hands of the military. After institutional investors, the next whales to support Bitcoin could therefore be the enemy countries of the United States, enough to explode the adoption of BTC. Could cryptocurrencies really end all forms of neocolonialism around the world? The United States and Europe will react eventually – violently, knowing them – sooner or later but in the meantime, cryptos blow a wind of hope for monetary freedom in countries wanting to free themselves from the greenback and its allies.
Litecoin, welcome in the Silver Age