Venezuelan President Maduro: Will use cryptocurrency as a means of payment

According to Bloomberg News, Venezuelan President Maduro said that Venezuela will start encryption payments "very soon."

On Monday, Maduro said in a television news that the Venezuelan government will use cryptocurrency as a "free domestic and international payment method." He also pointed out that

“The Treasury Secretary and the Central Bank of Venezuela already have new tools, and we will start these tools as soon as possible so that everyone can make bank transactions and domestic and international payments through the Central Bank’s account. Venezuela is operating in the world of cryptocurrencies.”

Just last week, Bloomberg reported that the Central Bank of Venezuela is conducting internal tests to determine if cryptocurrencies can be stored internally.

According to people familiar with the matter, this was done at the request of the state-owned Venezuelan Petroleum Company (PDVSA), which is seeking to send Bitcoin and Ethereum to the central bank and require financial institutions to use tokens to supply suppliers to oil companies. payment. The bank is also studying the possibility of including cryptocurrencies in the international reserve currency.

Due to US sanctions against Venezuela, the country was largely isolated from the global financial system, which exacerbated the domestic economic crisis and forced the government to use a variety of methods to transfer funds. Venezuelan President Maduro had previously launched the world’s first sovereign cryptocurrency and subsequently promoted the use of digital currency in the country, indicating that the government is eager to find a way to get rid of these restrictions.

Juan Guaido, a Venezuelan domestic opposition, said at a news conference earlier that "the regime’s use of cryptocurrencies shows their despair. This shows that the regime is experiencing an economic crisis."

However, for sanctions from the United States, the country’s President Maduro said that

"Donald Trump and his sanctions prevent Venezuela from trading in any bank in the world. But there are other payment methods, which is the way we are using, because our payment system works in China and Russia.

Image source: pixabay

By Xiu MU

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