Venezuela has a stash of crypto’s and it does not seem afraid to use them. The only problem is that the country does not seem completely sure about how to use them, also.
As reported by Bloomberg, the central bank of Venezuela recently started tests in order to determine how to use it’s cryptos to boost their national reserves. With inflation that goes beyond 1,000,000% a year, the country is desperate to have some monetary relief.
According to four people with “direct knowledge” of the situation, one of the state-run oil companies in the country, Petroleos de Venezuela SA, wants to pay its suppliers using BTC. The country’s international reserves are running pretty low now and it would be useful to have cryptos as an option.
The main reason why the government is considering this is because of the U. S. sanctions against the country, which isolated Venezuela from global markets and affected its economy. The current political and economic crisis doesn’t help, either.
Venezuela’s President Nicolas Maduro attempted to create the Petro, a national cryptocurrency, some time ago, but the project utterly failed. Because of this, it would make a lot of sense for Venezuela to start using Bitcoin. Several people outside of the government already do.
Cryptocurrencies were created partly as a way to avoid sanctions, so it is not surprising at all that they would be used on a nationwide basis to avoid sanctions from other governments. Other countries such as North Korea and Iran could follow a similar route, too, as it is harder to track Bitcoin transactions.
The U. S. government could, on the other hand, blacklist wallet addresses, which is already done in some cases. This could get in the way of Venezuela’s plans.