After a huge failure and a corruption scandal that cost the country between $3 and $20 billion dollars, Venezuela will return to the path of cryptocurrencies. This was announced by the president of that Caribbean nation, Nicolás Maduro, during a meeting with representatives of the banking sector.
Since the corruption cases became known last year 2023, cryptocurrencies in Venezuela have entered a dark phase. From having an advanced legal framework, a significant number of companies and projects went bankrupt and others went underground. The latter in the case of Mining companies. Now, Maduro wants a reset.
Venezuela needs cryptocurrencies to face new blows
A few hours ago, it was announced that the United States seized the presidential plane that Nicolás Maduro usually travels on. The measure seems to be the beginning of a new period of economic pressure against Venezuela after a honeymoon period between Caracas and Washington.
Since Donald Trump’s attempts to overthrow Maduro failed, the Biden administration has taken a step back. In that sense, it has reached out to the Venezuelan government and lifted many of the economic sanctions. In exchange, Caracas has committed to carrying out a democratic opening with fair elections. Venezuela has entered a period of relative recovery, with sustained economic growth and a notable fall in inflation.
In simple terms, everything seemed to be going well until the election date arrived. The CNE declared Maduro the winner in an allegedly fraudulent election that was not recognized by a significant number of countries. These included some allies of the Bolivarian revolution such as President Lula Da Silva of Brazil.
As expected, the United States did not recognize the results and all progress in relations is at a standstill. A possible victory for Donald Trump could mean economic hell for Venezuela and hence Maduro’s declaration that he will resume cryptocurrencies.
SUNACRIP executives, now in prison, stole billions using cryptocurrencies as a front. Source: VTV
The difficulties of a crypto reset
It is difficult for Caracas to restart its journey on the path of cryptocurrencies. The corruption case, being linked to the oil industry, reached enormous dimensions. The National Superintendence of Cryptoassets (SUNACRIP), from its board of directors, officials, allies and partners of PDVSA, all participated in the theft.
When the case broke, legal mining companies were immediately shut down and subjected to a strong investigation. Some resumed operations, but were later closed in 2024 due to constant blackouts throughout the country.
On the other hand, the Petro project, a kind of token issued by the government and which became one of the economic references of the exchange rate for official matters, was also cancelled. Since then, Maduro has never spoken about the subject again. The Petro was born as the hope of economic salvation in the face of sanctions, but ended up as a space for money laundering.
Given this background, it is not easy for Venezuela to resume oil trading with cryptocurrencies and generate trust. However, a new period of sanctions makes it clear that they have no other options.
Let’s talk about the world of cryptocurrencies. We started down that path and we have to get back to it because a group of bandits and thieves destroyed the path of cryptocurrencies, but we are going to get back to it.
Nicolas Maduro, President of Venezuela
Possible new features of the resumption of the crypto path in Venezuela
For Venezuela, returning to the crypto path would not simply be about resuming projects looted by the corrupt. The South American country’s new crypto phase is likely to be closely linked to other countries such as the BRICS. The latter are working on alternatives to break away from the commercial influence of the US dollar.
Among the alternative mechanisms that the BRICS are seeking is the creation of crypto exchanges to process virtual currencies. These include some central bank digital currencies. However, no further details are known.
However, Russia recently invited Venezuela to join the BRICS. Everything points to this being the new direction. On the other hand, it is also possible that Bitcoin is the government’s answer to avoid the mistakes made with the Petro, a currency destined to fail due to government control.
In this context, Venezuela will return to cryptocurrencies as a desperate measure in the face of imminent sanctions.
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