Fun

Venezuela To Start Using Cryptocurrency in Global Trade in Efforts To Fend off U.S. Sanctions

News Feed - 2020-10-01 10:10:52

Venezuela To Start Using Cryptocurrency in Global Trade in Efforts To Fend off U.S. Sanctions


Venezuela president Nicolas Maduro says the country is to start using cryptocurrency in both domestic and global trade, as part of efforts to neutralize crippling U.S. economic sanctions.


Speaking in the country’s parliament on Sept. 29, Maduro revealed that the move will “give new strength to the use of petro and other cryptocurrencies, national and global, in domestic and foreign trade…”


The country has already been trying to use its national crypto, the petro, for this purpose but without much success.


Maduro was delivering an anti-sanctions law aimed at spurring economic and social development, both paralyzed by U.S. sanctions. The blockade has also throttled Venezuela’s trade relations with much of the world, where the U.S. dollar still dominates.


Now, the oil-rich South American country has set its sights on virtual currency. Venezuela, the world’s sixth largest oil producer, is hoping to leverage cryptocurrencies to compensate for the squeeze in petrodollars arising from the economic sanctions. Bloomberg quoted Maduro as saying:The finance minister and Venezuela’s central bank have new instruments which we will activate very soon so that everyone can do banking transactions, as well as national and international payments through the central bank’s accounts. Venezuela is working within the cryptocurrency world.


Excoriated by the West, the leftist Venezuelan leader thundered: “Donald Trump and his sanctions are blocking Venezuela from carrying out transactions in any of the world’s banks. There’s other formulas to pay, and it’s what we’re using, because our payment system works perfectly in China and Russia.”


According to the Bloomberg report, the central bank of Venezuela is formally testing whether it can hold crypto in its reserves. The immediate targets include bitcoin (BTC) and ethereum (ETH).


Both assets have been requested by state-run Petroleos de Venezuela SA. The oil company wants to send BTC and ETH to the central bank and then have it pay the firm’s suppliers with the coins, says the report.


Venezuela’s deepening economic crisis has led to a massive adoption of cryptocurrency, with more than $8 million worth of bitcoin traded peer-to-peer each week, Coindance data shows. The government recently signed a new tax agreement that enabled it to start collecting taxes and fees in the petro.


What do you think about Venezuela turning to crypto in international trade? Let us know in the comments section below.Argentina’s Peso Plunges After Central Bank Tightens Foreign Exchange Controls: Citizens Discuss Bitcoin AdoptionEMERGING MARKETS | Sep 18, 2020Inflation Hit Ethiopia Demonetizes Currency To Curb Cash HoardingEMERGING MARKETS | Sep 17, 2020Tags in this storyBitcoi, Bitcoin, BTC, Cryptocurrency, ETH, litecoin, Nicolas Maduro, Petro, Petroleos de Venezuela SA, US economic sanctions, Venezuela, Venezuela anti-sanctions law


Image Credits: Shutterstock, Pixabay, Wiki CommonsUse Bitcoin and Bitcoin Cash to play online casino games here.Show comments

News Feed

Goldman Sachs Considering Bitcoin is Exactly How Best Wallet Is Slated to Reach $4.4bn of the Non-Custodial Market
Este artículo también está disponible en español. Sentiment from the head of a Wall Street giant signals good news for the cryptocurrency economy. Goldman Sachs CEO David
Layer-3 network Degen Chain hasn’t produced a block in 53 hours
Tom Mitchelhill6 hours agoLayer-3 network Degen Chain hasn’t produced a block in 53 hoursDegen Chain says it’s working to resolve an issue that has seen its network stop producing blocks for more than two days.1953 T
Bitcoin, Ethereum Technical Analysis: ETH Moves to 2-Month High Above $1,900 
Bitcoin, Ethereum Technical Analysis: ETH Moves to 2-Month High Above $1,900  Ethereum surged to a two-month high above $1,900 on Thursday, as the token continued to rally followi
Analysts expect Bitcoin price recovery after Fed leaves rates unchanged
Nancy Lubale5 hours agoAnalysts expect Bitcoin price recovery after Fed leaves rates unchangedBitcoin price shows signs of a recovery, but analysts are uncertain whether the strongest part of the correction has passed.33
Bitcoin Snaps Back After Slight Dip, Current BTC Chart ‘Is Near Identical to August 2017’
Bitcoin Snaps Back After Slight Dip, Current BTC Chart "Is Near Identical to August 2017" Digital currency prices are on the move again, after tumbling a hair do
Bitcoin Price Slips Below $102,000 — Here’s The Next Support In Sight
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Citi, Wells Fargo, BNY Mellon Invest in Crypto Firm Talos as Institutional Adoption of Digital Assets Accelerates
Citi, Wells Fargo, BNY Mellon Invest in Crypto Firm Talos as Institutional Adoption of Digital Assets Accelerates Several major financial services firms, including Citi, Wells Farg
Republican Congressman Tom Emmer Queries FDIC on Alleged Efforts to Purge Crypto Activity from US
Republican Congressman Tom Emmer Queries FDIC on Alleged Efforts to Purge Crypto Activity from US On Wednesday, Tom Emmer, the U.S. Republican congressman from Minnesota, revealed
Prashant Jha13 hours agoVitalik Buterin wants Bitcoin to experiment with layer-2 solutions, just like EthereumButerin also lauded the recent rise of Ordinals and believes they have brought the builder culture back to the
Whales Accumulate 40 Million XRP In 48 Hours – Where’s The Price Headed?
Este artículo también está disponible en español. Popular crypto analyst Ali Martinez shared data suggesting an interesting accumulation trend among XRP investors despite
Cardano Price Set For 300% Explosion With Major Bullish Impulse
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Infura Mistakenly Leaves Venezuelan Users Without Metamask Support
Infura Mistakenly Leaves Venezuelan Users Without Metamask Support Infura, the service provider of Metamask, one of the most used smart contracts-based wallets, blocked the access