Venezuela Mulls Over Storing Cryptocurrencies

Venezuela’s central bank is mulling over a move that might revolutionise the way central banks across the world over. The central bank in the country is wondering if it should add bitcoin and ether to its international reserves.

A  report by news portal The Block said the central bank was running some tests to determine if the cryptocurrencies could be stored. The tests came at the request of Petroleos de Venezuela SA (PDVSA), the state-owned oil and natural gas company. The news portal further said PDVSA was looking to pay the country’s suppliers in bitcoin.

This suggestion comes months after the United States of America slapped sanctions on countries such as Venezuela, Korea, Iran, to name a few. A few months ago, news portal, Bitcoin News said that a government agency called the National Superintendency of Crypto Assets and Related Activities (Sunacrip) agency, was managing Petro (Venezuela’s own cryptocurrency) distribution and other cryptocurrencies. The report said, through Sunacrip, the citizens of the country could obtain petro through cryptocurrencies such as bitcoin and litecoin, to evade the sanctions.

Venezuelan native Pedro Peroza had said, “Sunacrip is promoting a remittance exchange platform using bitcoin. I believe that its main objective is the collection of taxes in cryptocurrency, for that, a law was approved in the ANC (National Assembly Madurista) where what stands out is the collection of taxes.”

Sunacrip’s website had added, “The Digital Mining Administration’s objective is the planning, coordination, promotion and execution of digital mining activities and associated processes, licensing and certificates for the import, export, development and usufruct of said activities in the national territory,” the news portal reported.

On the current issue, Anthony Pompliano, the founder of Morgan Creek, in his newsletter, mused, “Bitcoin can not be debased by Venezuelan leaders or any other nation state. This inability to manipulate the currency restores trust among trading partners and citizens. The only way that Venezuela can reverse prior reputational damage is to begin using a currency that they do not control.”

The country has tried to launch Petro through direct orders and indirect adoption since 2018. But the number of controversies that have cropped up due to it, both within the country and outside, has made it impossible for the cryptocurrency to be launched.

Cover photo credit: Pixabay