Bitcoin (BTC) Envisioned as National Reserve Asset in a Future Democratic Venezuela

As protests in Venezuela (often met with brutal force by the authorities) continue over the re-election of President Nicolás Maduro and his policies

Venezuelan opposition leader envisions Bitcoin as national reserve asset in a future democratic country

María Corina Machado highlighted the role of BTC in bypassing government restrictions and called on potential donors to use the technology to aid the country’s cause.

Opposition leader María Corina Machado has envisioned Bitcoin (BTC) as a national reserve asset in a future democratic Venezuela, highlighting the role of the flagship cryptocurrency in bypassing government restrictions.

In an interview with Alex Gladstein, the Chief Strategy Officer at the Human Rights Foundation (HRF), Machado discussed what she called the “violations of financial rights” by former president Hugo Chávez and current President Nicolás Maduro, describing it as “a tragedy unfolding over the last two decades.”

The interview was streamed on HRF’s YouTube channel on September 5.

According to Machado, the “Venezuelan Bolivar, once stable at three to four units per U.S. dollar, has lost 14 zeros under Chávez and Maduro, turning a functional economy into a catastrophic financial crisis.”

Highlighting the hyperinflation in the country, she added that it reached an “unimaginable 1.7 million percent, with prices doubling every four days” in 2018. As per her statement, “cumulative inflation has exceeded 8 million percent” since 2016.

“This drove millions of Venezuelans to flee our country,” she added, stating that the “financial repression, rooted in state-sponsored looting, theft, and non-checked money printed, happened despite our vast natural resources and an oil price boom.”

Bitcoin as lifeline in Venezuela

Furthermore, Machado noted that the “regime weaponized financial systems against its people, freezing accounts, seizing assets, and cutting off services.” However, she highlighted the role of Bitcoin in bypassing these restrictions, not just for regular Venezuelans but also for her party’s campaign.

“Some Venezuelans found a lifeline in Bitcoin during hyperinflation, using it to protect their wealth and to finance their escape. Today, Bitcoin bypasses government-imposed exchange rates and thus helps many of our people. It has evolved from a humanitarian tool to a vital means of resistance,” she said.

In her statement, Machado expressed gratitude for the “lifeline Bitcoin provides and look[ed] forward to embracing it in a new democratic Venezuela.”

Bitcoin as future national reserve asset

Moreover, Machado stated that a future democratic Venezuela would include the maiden cryptocurrency as a critical element of its national reserves, which once included vast amounts of gold, later drained by the government under Chávez and Maduro.

“We envision Bitcoin as part of our national reserves, helping rebuild what the dictatorships stole. Before our gold reserves were plundered, Venezuela had wealthy financial reserves worldwide. We will restore those reserves and include Bitcoin as a key component,” she added.

Finally, she concluded that donations in the flagship decentralized finance (DeFi) asset were superior to “bank wires, which the regime usually blocks,” as the government cannot seize it, urging potential donors and others to “use this technology to bring about the change Venezuela desperately needs.”

It is easy to see Bitcoin’s appeal as a national reserve asset, especially as it has seen use in various, often extreme circumstances like the war in Ukraine and Julian Assange’s release, as well as becoming a legal tender in El Salvador in 2021 and in Central African Republic (CAR) in 2022.

Meanwhile, former United States President and candidate for the next presidential term, Donald Trump, has also floated the idea of establishing a national Bitcoin stockpile that would serve as a strategic reserve asset, key to addressing the U.S. national debt, which has recently surpassed $35 trillion.

Bitcoin mining in Venezuela

On the other hand, Venezuela’s Ministry of Electric Power shut down all crypto mining farms earlier this year, citing the high energy demand and the need to ensure reliable service for citizens, thus effectively ending (legal) Bitcoin mining in the country, as Finbold reported on May 18.

“The purpose is to disconnect all cryptocurrency mining farms in the country from the SEN [National Electrical System], avoiding the high impact on demand, which allows us to continue offering an efficient and reliable service to all the Venezuelan people.”

한편, 비트코인은 보도 당시 $55,780에 거래되어 지난 24시간 동안 1.89% 하락했고, 지난 7일 동안 6.29% 하락했으며, 여전히 33.05를 유지하면서 월간 차트에서 누적 감소 3.04%를 기록했습니다. 9월 6일 데이터 기준, 연초 이후 % 상승.

The above is the detailed content of Bitcoin (BTC) Envisioned as National Reserve Asset in a Future Democratic Venezuela. For more information, please follow other related articles on the PHP Chinese website!