With crypto prices already sky-high, it seems like the ruling Nicolás Maduro administration of Venezuela has been attempting to make hay while the sun shines and is now beginning to pay in bitcoin to businesses in Turkey and Iran, making use of a huge state-owned BTC and ethereum stash, with crypto prices still increasing.
As a combination of American sanctions and the coronavirus pandemic took their toll on the Venezuelan economy, the country, which has established its own cryptoasset, the petro, allegedly supported by unbarrelled oil reserves, has found itself in a deep financial crisis.
Yet Maduro seems to have sanctioned a number of crypto-business channels in an effort to bypass sanctions – and if the Central Bank is to be believed, there is no lack of Venezuelan BTC takers in the international community. The same sources said that President Maduro is making use of his newly passed “Anti-Blockade Law,” a piece of legislation that requires the Venezuelan executive to approve “the creation and implementation of any kind of financial mechanism” for payments, including “cryptoassets and tokens based on blockchain technology.”
Tareck El Aissami, the Venezuelan Vice President and Minister of the Economy, declared earlier this year that the state would start developing a system of farm subsidies and loans backed by a crypto-asset ‘basket’ like petroleum and other more well known international tokens.