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Venezuela turns to crypto payments

As it battles an imploding economy and global sanctions, Venezuela's government is planning to use cryptocurrencies as a "method for free national and international payments," according to President Nicolas Maduro.

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Venezuela turns to crypto payments

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

In a televised press conference, Maduro said: "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."

With Venezuela largely isolated from the global financial system, Maduro has seized on cryptocurrencies as a possible saviour for his country's economy.

Lat year he launched a sovereign crypto, called the Petro, but it has fallen flat. More recently, Bloomberg reports that Venezuela's central bank is running internal tests to determine whether it can hold crypto in its reserves - helping out state-run Petroleos de Venezuela SA, which is seeking to send Bitcoin and Ethereum to the central bank so it can pay its bills with them.

Opposition leader Juan Guaido says: “The regime’s use of cryptocurrency shows desperation. To resort to that kind of subterfuge emphasizes the economic crisis the regime is going through."

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Comments: (2)

A Finextra member 

This is good news indeed since it simply shows how desperate is the Venezuelan illegal narco-regime . Trying to use cryptos to avoid legal international sanctions ? This is exactly why cryptos can’t survive, since it will be used by corrupted individuals/governments in order to avoid financial tracking and monitoring by lawful watchdogs. Already Venezuela’s Petro crypto was a complete failure and it was publicly denounced as an illegal/scam. Now I want to see how Ethereum + Bitcoin survive a narco-stain of such magnitude. What a bad news for the crypto-world in general.

Russell Bell

Russell Bell Director at Fastbase Ltd

A narco-stain on crypto ?  Mucho fingido ofensa.  This year has seen many stories of money laundering hit the public eye, major scandals involving tens and hundreds of billions of dollars, euros, rubles, pesos etc.  Actual laundring of vast volumes of regular money, vs. hypothetical laundering of cryptocurrency.

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